Morning Commentary: Volatility continues to rock markets; liquid convertibles in focus

By Abigail W. Adams

Portland, Me., March 18 – Volatility continued to rock markets on Wednesday with equities largely erasing their gains from the previous session.

The Dow Jones industrial average was down 5.68%, the S&P 500 index down 5.08% and the Nasdaq composite down 3.99% shortly before 11 a.m. ET.

Convertibles secondary market trading activity remained muted with $58 million on the tape about one hour into Wednesday’s session.

Activity continued to center on large, liquid, equity-sensitive issues, a market source said.

Square Inc.’s 0.125% convertible notes due 2025 continued to plummet in active trading.

The notes traded down to 81.25 with about $8 million in reported volume one hour into the session, according to a market source.

Square stock continued to hit new lows. Stock traded down to $39.64, a decrease of 11.39%, shortly before 11 a.m. ET.

Booking Holdings Inc.’s 0.9% convertible notes due 2021 also continued to see high-volume activity.

The 0.9% notes were changing hands at 103.375 with about $6 million in reported volume early in Wednesday’s session.

Booking Holdings stock traded down to $1,250.06, a decrease of 8.64%, shortly before 11 a.m. ET.

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