Morning Commentary: Convertibles trading quiet amid stock sell-off; Pioneer Natural active

By Abigail W. Adams

Portland, Me., July 24 – The convertibles secondary space was quiet early Friday as equities trended lower following increased tensions between the United States and China.

There was about $68 million in reported volume a little over one hour into Friday’s session with few names seeing concentrated trading activity, a market source said.

Activity returned to the “usual suspects” with Southwest Airlines Co.’s 1.25% convertible notes due 2025 and Pioneer Natural Resources Co.’s 0.25% convertible notes due 2025 the most actively traded issues early in the session, the source said.

Southwest Airlines’ 1.25% convertible notes due 2025 were changing hands at 119.125 with stock off more than 2%.

Southwest stock traded down to $31.78 early in the session but was bouncing off its lows and changing hands at $32.12, a decrease of 2.07%, shortly before 11 a.m. ET.

The bonds saw about $5.5 million in reported volume.

Pioneer Natural Resources’ 0.25% convertible notes due 2025 were changing hands at 120.625 with a little over $3 million in reported volume, according to a market source.

Pioneer stock was changing hands at $100.54, a decrease of 0.29%, shortly before 11 a.m. ET.

Both Southwest Airlines’ and Pioneer Natural Resources’ convertible notes are large, liquid issues.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.