Convertibles secondary space quiet; Vonage holds; iQIYI, Booking active, lower outright

By Abigail W. Adams

Portland, Me., June 14 – The convertible secondary space took a breather on Friday with trading activity petering out as recently priced paper began to fade from focus.

While the day started off with decent trading volume of $72 million, it dwindled into the afternoon.

Few names saw concentrated trading activity, and there was little significant movement, a market source said.

The secondary space showed signs of a “positive hangover” on Friday with many taking the day off after a high-volume week for new deals with more than $2.3 billion in new paper flooding the secondary space, a market source said.

Accounts were also remaining on the sidelines as equities turned red amid increased geopolitical tensions with president Donald Trump blaming Iran for an attack on two oil tankers in the Gulf of Oman on Thursday.

Vonage Holdings Corp.’s 1.75% convertible notes due 2024 continued to see active trading with the notes holding onto their initial dollar-neutral expansion in the secondary space.

Booking Holdings Inc.’s 0.35% convertible notes due 2020 were among the most actively traded issues during Friday’s session with the notes dropping outright alongside stock.

iQIYI Inc.’s 2% convertible notes due 2025 were also active. While the notes traded down on an outright basis, they were largely moving in line dollar-neutral.

Vonage holds

Vonage’s newly priced 1.75% convertible notes remained active on Friday although the notes were largely trading sidewise.

The 1.75% notes continued to change hands around 100.5 with more than $7 million in reported volume by the late afternoon.

While largely trading in line dollar-neutral on Friday, the notes continued to hold onto their dollar-neutral expansion, a market source said.

Sources pegged the expansion of the notes between 0.5 point to 1 point since pricing.

Vonage stock was closed Friday at $11.55, a decrease of 0.86%.

While new paper from Vonage remained active, Zynga Inc.’s 0.25% convertible notes due 2024 only saw one print on the tape on Friday, a market source said.

The notes traded below par on Friday with the single print at 99.875. However, it is difficult to determine a price trend with volume so light, the source said.

Zynga stock closed Friday at $6.20, a decrease of 0.48%.

Booking Holdings in focus

Booking Holdings’ 0.35% convertible notes due 2020 were one of the most actively traded issues during Friday’s session.

The notes were trading down on an outright basis with stock off.

The 0.35% notes were changing hands around 137.125 in the mid-afternoon. More than $16 million of the bonds were on the tape by the late afternoon.

The movement in stock most likely sparked the trading activity, a source said.

While less active, Booking Holdings’ 0.9% convertible notes due 2021 also traded down on an outright basis.

The notes were down about 1.5 points to change hands around 112.125 in the late afternoon.

Booking Holdings’ stock traded as high as $1,811.68 and as low as $1,772.725 before closing the day at $1,775.5, a decrease of 1.88%.

iQIYI down

iQIYI’s 2% notes due 2025 were also trading down on an outright basis with stock off during Friday’s session.

The 2% notes dropped 1 point outright to 92.875 early in the session and were changing hands around 93 in the mid-afternoon.

However, the notes were largely trading in line on a dollar-neutral, or hedged, basis, a market source said.

About $15 million of the bonds were on the tape by the late afternoon.

iQIYI’s 3.75% convertible notes due 2023 also saw some activity on Friday. The notes down about 0.5 point to trade just south of 104.

About $5 million of the bonds were in play on Friday.

The Beijing-based online entertainment service provider’s ADSs were down more than 2% on Friday.

They traded as low as $17.63 and as high as $18.16 before closing the day at $17.89, a decrease of 2.4%.

Mentioned in this article:

Booking Holdings Inc. Nasdaq: BKNG

iQIYI Inc. Nasdaq: IQ

Vonage Holdings Corp. NYSE: VG

Zynga Inc. Nasdaq: ZNGA

© 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.