Morning Commentary: Convertibles secondary trading light; Snap notes active early

By Abigail W. Adams

Portland, Me., Oct. 25 – It was another slow start to the week in the convertibles secondary space with little on the tape despite a green open for equities.

The Dow Jones industrial average was up 32 points, or 0.09%, the S&P 500 index was up 0.22%, the Nasdaq Composite was up 0.47% and the Russell 2000 index was up 0.76% shortly before 11 a.m. ET.

Equity markets were again pushing up against all-time highs with a heavy week of earnings ahead with major tech companies set to report.

While the majority of earnings reports have been positive, Snap Inc.’s earnings cut its stock by more than 20% on Friday and dragged down the overall tech sector.

There was just $40 million in reported volume more than one hour into Monday’s session with no convertible issuer seeing concentrated trading activity.

However, Snap’s convertible notes were among the names on the tape although with little movement in price.

Snap’s 0.75% convertible notes were changing hands at 251.75 versus a stock price of $54.71 early in Monday’s session.

There was about $3 million in reported volume.

Snap’s 0% convertible notes due 2027 were changing hands at 104.5 versus a stock price of $55.48.

There was about $2 million in reported volume.

Snap’s stock wavered between gains and losses early in the session.

After trading up to $56.15, stock was changing hands at $54.36, a decrease of 1.41%, shortly before 11 a.m. ET.

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