Morning Commentary: Convertibles trading volume light; Ares Capital, Chegg active

By Abigail W. Adams

Portland, Me., July 9 – The convertibles secondary market remained subdued early in Tuesday’s session with volume again light, sources said.

There was $60 million in reported volume about one hour into the session with few names seeing concentrated trading activity.

Ares Capital Corp.’s 3.75% convertible notes due 2022 saw the highest reported volume early Tuesday.

The notes were trading just north of 102 with more than $6 million on the tape, according to a market source.

Ares Capital stock was $18.10, an increase of 0.19%, shortly before 11 a.m. ET.

The notes carry an investment-grade rating.

Chegg Inc.’s 0.125% convertible notes due 2025 were again active early in Tuesday’s session.

The notes were coming in on an outright basis alongside stock.

They were changing hands around 105.625.

Chegg stock was $41.99, a decrease of 1.87%, shortly before 11 a.m. ET.

The notes saw more than $4 million in reported volume.

While volume was light during Monday’s session, the notes traded north of 108 as stock broke out to a new 52-week high.

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