Morning Commentary: Convertibles trading light as equities tank; Western Digital active

By Abigail W. Adams

Portland, Me., Jan. 3 – Trading volume was light in the secondary space as equities stood poised for a brutal session with the Dow Jones industrial average opening the day down almost 570 points.

Apple Inc. was dragging markets lower after slashing its sales forecast due to slowing iPhone sales in China.

Apple supplier Western Digital Corp.’s 1.5% convertible notes due 2024 were in focus in the secondary space.

The notes were changing hands at about 80.875 with about $6 million of the bonds on the tape less than one hour into Thursday’s session, a market source said.

Western Digital stock was down to $35.90, a decrease of 6.17%, shortly before 11 a.m. ET.

About 13% of Western Digital’s revenue in fiscal year 2018 came from Apple, according to a market source.

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