Convertibles: Primary market quiet at open; investment-grade convertibles active early

By Abigail W. Adams

Portland, Me., Aug. 3 – The convertibles primary and secondary markets saw a sleepy start to the month with no deals announced and little on the tape.

There are new deals in the pipeline, sources said. The question is when they will launch.

Sources expect some new paper in the coming week.

The previous week was the first week no new deals priced since the primary market reopened in April.

Meanwhile, the secondary space had $48 million on the tape about one hour into Monday’s session.

“It’s quiet, but that’s to be expected on a summer Monday,” a source said.

Investment-grade convertibles topped the volume charts early in the session with some large trades on the tape.

Euronet Worldwide Inc.’s 0.75% convertible notes due 2049 were active with the notes changing hands around 97.375, a source said.

While the bonds saw $5 million in reported volume, there were only two trades on the tape.

Euronet Worldwide stock was $94.24, a decrease of 1.98%, shortly before 11 a.m. ET.

Ares Capital Corp.’s 4.625% convertible notes due 2024 also saw a large-volume trade early in the session.

The 4.625% notes changed hands at 101.875 early Monday. There was a single trade of about $3.5 million bonds.

Ares stock was changing hands at $14.35, an increase of 1.76%, early Monday.

However, neither Euronet’s nor Ares’ convertible notes are equity sensitive.

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