Morning Commentary: Twitter in focus as stock surges

By Abigail W. Adams

Portland, Me., April 4 – There was an uptick of activity in the convertible secondary space on Monday with one name dominating the tape – Twitter Inc.

Twitter’s convertible notes accounted for more than one-third of the $68 million in reported volume about one hour into the session.

The convertible notes were making large gains on an outright basis as stock surged following news Elon Musk had taken a sizeable position in the social media company.

Twitter’s 0% convertible notes gained 2.75 points outright with stock up more than 25%.

The convertible notes were changing hands at 87.75 versus a stock price of $47.75 early in the session, according to a market source.

There was $19 million in reported volume.

Twitter’s 0.25% convertible notes due 2024 rose more than 7 points outright.

They were changing hands at 109.5 versus a stock price of $47.46 early in the session.

There was $8 million in reported volume.

Twitter’s stock was changing hands at $49.38, an increase of 25.62%, shortly before 11 a.m. ET.

News broke Monday that Tesla chief executive officer Elon Musk had a passive 9.2% stake in Twitter as of March 14.

Musk revealed his stake after criticizing the social media platform’s content rules.

The move has led to speculation that a buyout of Twitter may be on the horizon, a source said.

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