Morning Commentary: MongoDB convertible notes drop below par in early trading

By Abigail W. Adams

Portland, Me., Nov. 7 – It was a slow start to the week in the convertibles secondary space as equity markets struggled to find direction ahead of Tuesday’s midterm elections and fresh inflation data out later in the week.

Equity indexes were wavering between gains and losses after a strong open gave way to selling pressure.

The Dow Jones industrial average was up 206 points, or 0.64%, the S&P 500 index was up 0.33%, the Nasdaq Composite index was up 0.05% and the Russell 2000 index was down 0.11%, shortly before 11 a.m. ET.

MongoDB Inc.’s 0.25% convertible notes due 2026 continued to lose ground on an outright basis as stock continued its downtrend with the convertible notes dropping below par in early trading for the first time since March 2020.

While volume was light, the notes fell 2 points outright to a 99-handle with stock down 3%.

The notes changed hands at 99.25 in early trade.

MongoDB’s stock was seen at $140.33, a decrease of 3.47%, shortly before 11 a.m. ET.

The cloud computing database company’s 0.25% convertible notes have fallen 13 points outright in the past week with stock down more than 25%.

While MongoDB will not report earnings until early December, stock has been dragged down by poor earnings results from industry peers.

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