Morning Commentary: Splunk soon-to-mature convertible notes active on quiet morning

By Abigail W. Adams

Portland, Me., Jan. 30 – It was another slow start to the day in the convertibles secondary space with equity markets launching a heavy week for earnings and macro events with choppy trading.

Equity indexes launched Monday’s session in the red, turned mixed within the first hour of trading but again sank into the red with a slew of earnings reports due and the Federal Open Market Committee’s decision on interest rates on Wednesday.

The Dow Jones industrial average was outperforming and the tech heavy Nasdaq leading losses early in the session with the Dow down 71 points, or 0.21%, S&P 500 index was down 0.84%, the Nasdaq Composite index down 1.67% and the Russell 2000 index down 0.64% shortly before 11 a.m. ET.

There was $53 million in reported volume about one hour into the session with only two names seeing $5 million in reported volume.

Short-duration notes remained active with Splunk Inc.’s soon-to-mature 0.5% convertible notes due Sept. 15, 2023 in focus in early trade.

While active, the notes saw little movement in price.

The 0.5% notes were changing hands at 97.5 versus a stock price of $93.30 early in the session, according to a market source.

The yield was 4.5%.

There was $5 million in reported volume.

Splunk’s stock was trading at $92.79, a decrease of 2.69%, shortly before 11 a.m. ET.

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