Morning Commentary: Convertibles secondary space quiet early; Airbnb notes active

By Abigail W. Adams

Portland, Me., May 2 – It was a quiet start to the week in the convertibles secondary space with few names on the tape as equity markets struggled to find directions.

After wavering between gains and losses, equity indexes turned positive following the previous week’s carnage.

The Dow Jones industrial average was up 142 points, or 0.42%, the S&P 500 index was up 0.44%, the Nasdaq Composite index was up 0.68% and the Russell 2000 index closed up 1.11% shortly before 11 a.m. ET.

There was $22 million in reported volume about one hour into the session with no name seeing more than $5 million in reported volume.

“It’s because there’s no disaster du jour today,” a source said.

Airbnb Inc.’s 0% convertible notes due 2026 were on the tape with the notes coming in alongside stock on the eve of the company’s earnings report.

The 0% convertible notes were down 0.5 point outright with stock off more than 2%.

The notes were changing hands at 92 versus a stock price of $153.33 early in the session.

There was $3 million in reported volume.

Airbnb’s stock was trading at $149.40, a decrease of 2.49%, shortly before 11 a.m. ET.

The online vacation rental marketplace is scheduled to report earnings on Tuesday.

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