Morning Commentary: Bilibili, Affirm convertible notes in focus in early trading

By Abigail W. Adams

Portland, Me., Dec. 6 – Recent convertible bond deals were in focus in early trading on Monday as markets attempted to rebound from last Friday’s rout.

While equity benchmarks were in positive territory in early trading, the tech sector continued to underperform with growth stocks remaining suspect as investors brace for an end to easy money policy.

The Dow Jones industrial average was up 550 points, or 1.59%, the S&P 500 index was up 0.89% and the Russell 2000 index was up 1.49% shortly before 11 a.m. ET.

While the Nasdaq Composite was in negative territory early in Monday’s session, it turned green as the session progressed and was up 0.26%.

Bilibili Inc.’s 0.5% convertible notes due 2026 and Affirm Holdings Inc.’s 0% convertible notes due 2026 were in focus in early trading as the equity of the recently priced convertible notes remained volatile.

Bilibili’s 0.5% convertible notes were largely unchanged in early trading. They continued to change hands around 88.375 versus an equity price of $54.37.

There was $8 million in reported volume.

The Shanghai-based video sharing website’s American Depositary Shares brushed up against its 52-week low before rebounding.

The ADSs traded down to $52.09 but jumped to trade up to $55.17, an increase of 0.47%, shortly before 11 a.m. ET.

The 0.5% convertible notes, which priced at par on Nov. 18, have been on a downward spiral over the past week as delisting threats between the United States and China escalated.

The threats culminated last Friday in DiDi Global Inc.’s announcement that it was leaving the New York Stock Exchange about six months after its blockbuster IPO.

Affirm Holdings’ 0% convertible notes due 2026 were also active as stock plunged in early trading before also returning to positive territory.

Affirm’s 0% convertible notes traded down about 1 point outright with stock off early in the session.

The convertible notes were changing hands at 92.5 versus a stock price of $102.51 early in the session.

There was about $6 million in reported volume.

Affirm’s stock traded as low as $96.44 early Monday before climbing to trade at $108.39, an increase of 1.04%, shortly before 11 a.m. ET.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.