Morning Commentary: Workday drops after equity high

By Abigail W. Adams

Portland, Me., Nov. 29 – Workday Inc.’s 0.25% convertible notes due 2022 continued to experience trading activity Wednesday on a quiet morning in the convertible space. The company’s convertible notes dropped about 1 point in early morning trades to 101.34, according to Trace data.

The company’s stock was also down 3.6% to $110.63 in early activity.

The company’s convertibles saw high volume trading in the past two weeks as the stock crept steadily upwards, beating its 52-week high on Black Friday.

Workday’s 0.75% convertible notes due 2018 experienced high volume trading alongside the 0.25% convertible notes last week but trading activity in the 0.75% notes has since tempered.

“They were trading in between them because one is cheaper than the other and they wanted to stay in the name,” a market source said of the trading activity.

The 0.25% convertible notes were trading below par prior to the rise in company stock. The notes were trading in the 102 to 103 range before dropping Wednesday morning to 101, according to Trace data.

The company’s 1.5% convertible notes due 2020 dropped 4 points to trade at 146 in early trades. The 0.75% convertible notes were trading in the 138 range on Tuesday.

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