Morning Commentary: Twitter convertible notes active on generally quiet morning

By Abigail W. Adams

Portland, Me., April 18 – It was a slow return from the long weekend with the convertibles secondary space quiet on a choppy morning for equities.

With most European markets closed on Monday, it was expected to be a quiet session.

After wavering between gains and losses, equity indexes were mixed early in the session.

The Dow Jones industrial average was up 45 points, or 0.13%, the S&P 500 index was up 0.14%, and the Nasdaq Composite index was up 0.06% shortly before 11 a.m. ET.

However, the Russell 2000 index remained in negative territory and was down 0.43% shortly before 11 a.m. ET.

Trading volume was again anemic in the convertibles secondary space with $27 million in reported volume more than one hour into the session.

Twitter Inc.’s 0% convertible notes due 2026 were the only notes to see concentrated trading activity.

The 0% notes continued to gain on an outright basis.

They were up about 0.75 point outright with stock up 3%.

The notes were changing hands just shy of 90.5 shortly before 11 a.m. ET.

Twitter’s stock was trading at $46.44, an increase of 3.02%, shortly before 11 a.m. ET.

Twitter has been in focus the past two weeks due to Tesla Inc. CEO Elon Musk.

Musk announced a hostile takeover bid for the company valuing it at $54.20 per share last Thursday.

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