Morning Commentary: Convertibles trading light; equity-linked notes tied to Voya active

By Abigail W. Adams

Portland, Me., July 3 – Trading volume in the convertible space remained light on Tuesday as the market prepares for a mid-week holiday.

While no single issue saw more than $5 million in trades, there was a smattering of activity across a broad spectrum, a market source said.

Trading volume was $78 million with about two hours left until market close.

“It’s more than I thought it would be,” the source said.

JPMorgan Chase Financial Co. LLC’s most recently priced 0.25% cash-settled equity-linked notes due 2023 tied to Voya Financial, Inc. stock saw some trading action.

BofA Finance LLC’s 0.25% cash-settled equity-linked notes due 2023 tied to Voya stock were also active.

“There’s some jockeying between them,” a source said.

JPMorgan’s 0.25% notes were seen trading at 95.75 on Tuesday. The notes have steadily traded down since mid-June as Voya stock slipped.

BofA’s 0.25% notes were seen trading between 93.5 and 93.75 on Tuesday. The notes have largely languished below par since pricing in April. However, the 93 range is a new low for the notes.

Voya stock was $47.30 early Tuesday.

Stock was $52.71 when JPMorgan priced its latest 0.25% notes on April 24. Voya stock was $50.72 when BofA priced its equity-linked notes on April 5.

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