Morning Commentary: Lumentum convertible notes jump in early trade; equity markets lower

By Abigail W. Adams

Portland, Me., June 20 – It was a slow return from the long weekend in the convertibles secondary space with trading activity light as equity indexes launched the week in the red.

The Dow Jones industrial average was down 337 points, or 0.98%, the S&P 500 index was down 0.83%, the Nasdaq Composite index was down 0.78% and the Russell 2000 index was down 0.92% shortly before 11 a.m. ET.

There was $54 million in reported convertible bond trading volume about one hour into the session with few names seeing concentrated trading activity.

Few names were making notable price movements with one an exception.

Lumentum Holdings Inc.’s 1.5% convertible notes due 2029, the last deal to clear the primary market, continued to gain on an outright and dollar-neutral basis as stock soared early in the session.

The 1.5% notes were up more than 6 points outright as stock rose more than 8% in early trading.

The notes were changing hands at 111 versus a stock price of $62.96 early in the session.

There was $3 million in reported volume.

Lumentum’s stock was trading at $63.17, an increase of 9.54%, shortly before 11 a.m. ET.

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