Morning Commentary: Tesla convertibles remain in focus; Cree notes active, higher

By Abigail W. Adams

Portland, Me., May 24 – The convertibles secondary space was active early in Friday’s session.

More than $91 million was on the tape about one hour into the session with a wide breadth to the names in play, a market source said.

Given the volatility in capital markets, holders most likely did not want to go long in certain names over the extended weekend, given the unpredictability of the current geopolitical environment, a market source said.

Tesla Inc. remained in focus with the 1.25% convertible notes due 2021 the most actively traded issue early in the session.

The 1.25% notes were changing hands around 90.5 with stock again off early in Friday’s session. The notes saw more than $9 million in reported volume early in the session.

While the 1.25% convertible notes were in focus, the other tranches were slow to trade, a source said.

Tesla stock was $190.17, a decrease of 2.72%, shortly before 11 a.m. ET.

Cree Inc.’s 0.875% convertible notes due 2023 were also active early in Friday’s session. The notes were posting gains alongside stock.

They gained about 2 points outright to change hands at 117.25.

Cree stock was $57.21, an increase of 1.06%, shortly before 11 a.m. ET.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.