Morning Commentary: Convertibles trading slow; Western Digital, Fortive notes active

By Abigail W. Adams

Portland, Me., July 22 – It was a summer Monday in the convertibles secondary space with not much activity on the tape.

However, with some new deals whispered to be on the horizon and a heavy week of earnings reports from convertibles issuers ahead, the pace is expected to pick up as the week progresses.

There was $31 million in reported volume about one hour into Monday’s session, according to a market source.

Western Digital Corp.’s 1.5% convertible notes due 2024 were active early in the session with some large trades on the tape.

The 1.5% convertible notes continued to change hands around 92.5 with the yield on the notes 3.3%, according to a market source.

About $6 million of the bonds were on the tape early in the session although the large volume changed hands in two trades.

Western Digital stock was making gains early Monday.

Stock was changing hands $54.12, an increase of 3.16%, shortly before 11 a.m. ET.

The tech sector in general was improved early in Monday’s session as China signaled trade talks would resume and Chinese companies began the process of buying agricultural products from the United States, a term of the agreement allegedly made during the G-20 summit.

Fortive Corp.’s 0.875% convertible notes due 2022 also saw among the highest volume early in the session.

The 0.875% notes traded at 103, a market source said.

There were about $5 million of the bonds on the tape early in the session. However, they changed hands in a single trade.

Fortive stock was $78.86, an increase of 0.45%, shortly before 11 a.m. ET.

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