Morning Commentary: Medallia active; Airbnb convertible notes gain in early trading

By Abigail W. Adams

Portland, Me., Nov. 1 – The convertibles primary market remained quiet early Monday following one of the slowest months for new deal activity in recent history.

While the convertibles primary market only saw one convertible bond deal totaling $155 million price over the past month, the calendar is expected to be active in November, sources said.

Meanwhile, trading activity in the convertibles secondary space was muted on Monday as equities struggled to find direction after broaching all-time heights the previous week.

The Dow Jones industrial average was flat, the S&P 500 index was down 0.18%, the Nasdaq Composite was up 0.09% and the Russell 2000 index was up 1.81%, shortly before 11 a.m. ET.

There was about $65 million on the tape with few names seeing concentrated trading activity.

Medallia Inc.’s 0.125% convertibles due 2025 remained active following the closing of Thoma Bravo’s $6.4 billion all-cash acquisition of the company, which was announced last Friday.

The notes were changing hands at 108 with about $4 million in reported volume.

Medallia’s stock is no longer listed on the New York Stock Exchange.

Airbnb Inc.’s 0% convertible notes due 2026 were active early in the session with the company slated to report earnings later in the week.

The 0% convertible notes rose about 1 point outright with stock up almost 1.5% early in the session.

The 0% convertible notes were changing hands at 99 versus a stock price of $171.50 early in the session.

There was about $3 million in reported volume.

Airbnb’s stock traded to a high of $175.25 early in Monday’s session before coming in to trade at $173.32, an increase of 1.55%.

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