Morning Commentary: Live Nation convertible notes pop above par on earnings beat

By Abigail W. Adams

Portland, Me., May 5 – It was a slow start to the day in the convertibles secondary space as activity surrounding recent issues continued to dwindle.

However, the market tone improved substantially with equities surging as regional banks rebounded after getting slaughtered the previous session.

The Dow Jones industrial average was up 428 points, or 1.29%, the S&P 500 index was up 1.52%, the Nasdaq Composite index was up 1.75% and the Russell 2000 index was up 1.89% shortly before 11 a.m. ET.

There was $77 million in reported convertibles trading volume about one hour into the session with earnings-related news driving trading activity.

Live Nation Entertainment, Inc.’s 3.125% convertible notes due 2029 were in focus early in the session with the notes popping above par as stock surged post-earnings.

The 3.125% notes gained 4.5 points outright with stock up 12%.

The notes were changing hands at 101.375 early in the session, according to a market source.

There was $8 million in reported volume.

Live Nation’s stock was trading at $75.85, an increase of 13.09%, shortly before 11 a.m. ET.

The entertainment company’s stock surged after a large earnings beat with the company reporting losses per share of 20 cents versus analyst expectations for losses of 47 cents.

Revenue was $3.13 billion versus analyst expectations for revenue of $2.27 billion.

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