Morning Commentary: Tech convertibles in focus; RingCentral notes continue to gain

By Abigail W. Adams

Portland, Me., March 30 – The convertibles secondary space launched the week with light trading volume as equity markets wavered between gains and losses early in the session.

There was $62 million in reported volume on the tape about one hour into Monday’s session.

Several tech names were in focus with tech sector equities again outperforming.

RingCentral Inc.’s 0% convertible notes due 2025 continued to gain on both an outright and dollar-neutral basis.

The 0% convertible notes traded up another 1 point outright to 97.125 early in Monday’s session.

The notes saw $5 million in reported volume.

The stock of the cloud-based communications and collaboration solutions company continued to gain.

RingCentral stock was $246.42, an increase of 3.24%, shortly before 11 a.m. ET.

After falling victim to the sell-off that dragged down equities, RingCentral stock has recouped all of its losses over the past few weeks.

The 0% convertible notes priced at par with a stock reference price of $240.28 on Feb. 27.

Microchip Technology Inc.’s 1.625% convertible notes due 2025 were also active early Monday.

The 1.625% notes were changing hands at 143.375 early in the session with stock up about 2%.

The bonds saw about $4 million in reported volume early in the session.

Microchip stock was $69.99, an increase of 2.62%, shortly before 11 a.m. ET.

Microchip recently announced a privately negotiated exchange for $615 million of the principal amount of the 1.625% notes.

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