Morning Commentary: Travere Therapeutics convertibles tick higher; Pinduoduo active

By Abigail W. Adams

Portland, Me., March 10 – It was another quiet morning in the convertibles secondary space as selling pressure returned to equities with optimism about a cease-fire in the Ukraine fading.

The Dow Jones industrial average was down 371 points, or 1.12%, the S&P 500 index was down 1.39%, the Nasdaq Composite was down 2.16%, and the Russell 2000 index was down 1.34% shortly before 11 a.m. ET.

There was $62 million in reported volume about one hour into the session with few names seeing concentrated trading activity.

Travere Therapeutics Inc.’s 2.25% convertible notes due 2029 continued to tick higher on an outright basis.

The 2.25% notes traded up to 106 versus a stock price of $25.77 early in the session.

There was about $6 million in reported volume.

Travere’s stock was $24.78, a decrease of 1.36%, shortly before 11 a.m. ET.

Pinduoduo Inc.’s 0% convertible notes due 2025 also returned to focus on a rough day for China-based companies with renewed concern over regulatory pressure from Beijing pushing down the ADR space.

The 0% notes were holding up well amid the stock move.

They continued to trade on an 86-handle with the company’s equity off about 20%.

The notes were changing hands at 86.625 early in the session.

While equity was under pressure early Thursday, the notes were largely a yield play with the notes now yielding 8.55%.

Pinduoduo’s equity was changing hands at $36.04, a decrease of 16.84%, shortly before 11 a.m. ET.

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