DISH convertibles rebound; Palo Alto, Pioneer Natural Resources gain in active trading

By Abigail W. Adams

Portland, Me., Dec. 23 – The convertibles secondary space was again quiet on the last full trading session of the week.

There was $73 million on the tape about one hour into the session and $347 million about one hour before the market close.

While volume was light, some sources were surprised by the level of activity in the space, which is typically much quieter this time of year.

“Outright guys are making room and positioning themselves for the coming year,” a source said.

DISH Network Corp.’s 0% convertible notes due 2025 staged a rebound with the notes gaining on an outright and dollar-neutral basis as stock caught a bid.

Palo Alto Networks Inc.’s 0.375% convertible notes due 2025 were in focus with the notes on the rise as investors zero in on cyber-security firms following the high-profile hack of early December.

Pioneer Natural Resources Co.’s 0.25% convertible notes due 2025 were also active and making gains on an outright basis as crude oil futures surged.

DexCom Inc.’s 0.25% convertible notes due 2025 saw renewed attention on Wednesday with the notes briefly popping above par soon after the opening bell only to again sink below by the market close.

DISH rebounds

DISH’s 0% convertible notes due 2025 rebounded on Wednesday as the company’s stock caught a bid.

The notes traded up to 98 after trading down to a 94-handle the previous session.

They expanded 0.5 point dollar-neutral, reversing a trend that has seen the notes contract since hitting the aftermarket.

DISH’s stock traded to a low of $28.82 and a high of $31.15 before closing the day at $30.97, an increase of 7.24%.

Palo Alto gains

Palo Alto’s 0.375% convertible notes due 2025 were in focus on Wednesday with the notes gaining on an outright and dollar-neutral basis.

The 0.375% notes traded up about 2 points outright with stock off almost 2%.

The notes were changing hands at 135.187 in the late afternoon, according to a market source.

There was more than $16 million in reported volume.

Palo Alto’s 0.75% notes were also active with the notes changing hands at 144.25.

Palo Alto’s stock traded to a high of $375 and a low of $364.22 before closing the day at $364.82, a decrease of 1.95%.

The notes were active as investors zero in on cyber-security firms following the high-profile hack of early December.

Earlier in December, cybersecurity firm and convertible bond issuer FireEye Inc. announced it had been hacked through software provided by SolarWinds.

The backdoor implanted in SolarWinds software gave hackers access to several government agencies.

Cybersecurity firms’ shares have been on a tear since last week with investors betting that the hack would result in increased funding for cybersecurity.

Pioneer Natural rises

Pioneer Natural Resources’ 0.25% convertible notes due 2025 were also among the volume movers of Wednesday’s session with the notes making gains on an outright basis.

The 0.25% notes gained about 2 points outright with stock up more than 4%.

The notes were trading at 131.5 in the late afternoon.

The notes from the investment-grade-rated oil and gas company “have been a favorite among buyers,” a source said.

Pioneer Natural Resources’ stock traded to a low of $109.44 and a high of $114.88 before closing the day at $113.12, an increase of 4.32%.

WTI crude oil future surged on Wednesday, settling at $48.09, an increase of $1.07 or 2.28%.

DexCom active

DexCom’s 0.25% convertible notes due 2025 saw renewed attention on Wednesday with the notes briefly popping above par as stock spiked shortly after the opening bell.

However, the notes quickly dropped back below par and were seen changing hands at 99.5 about one hour into the session.

While active early in the session, the notes fell out of focus as the session progressed.

DexCom’s stock traded to a high of $364.99 and a low of $355.98 before closing the day at $355.99, an increase of 0.5%.

Mentioned in this article:

DexCom Inc. Nasdaq: DXCM

DISH Network Corp. Nasdaq: DISH

Palo Alto Networks Inc. NYSE: PANW

Pioneer Natural Resources Co. NYSE: PXD

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