Morning Commentary: Tech names trade as overall liquidity remains limited

By Stephanie N. Rotondo

Seattle, June 26 – Convertible bond investors were easing their way back in on Monday, resulting in a limited amount of trading, one sellside source reported.

Technology names remained in focus, however.

For instance, Yahoo! Inc.’s 0% convertible notes due 2018 were seen inching up ˝ point or more to a 114 to 114.5 context.

There was no fresh news out on Yahoo – now Altbaba Inc. since Verizon bought most of the company’s core assets – aside from the announcement of the company’s Dutch auction tender results last week. Altbaba spent about $3.4 billion to repurchase 64.51 million common shares at $53.20 each.

On Monday, Altbaba’s stock (Nasdaq: AABA) was down 26 cents at $54.47.

Meanwhile, Twitter Inc.’s 1% convertible notes due 2021 were seen little changed, hanging in a 91.75 to 92 range, according to a market source.

While the bonds had barely moved, the underlying equity (NYSE: TWTR) was off over 1.5% in early trading.

Like Yahoo/Altbaba, there was no fresh news out on the social media company to act as a catalyst.

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