Morning Commentary: YY, Weibo convertible notes remain in focus in secondary market

By Abigail W. Adams

Portland, Me., June 21 – The convertibles secondary space remained focused on China-based social media companies early in Friday’s session.

YY Inc.’s newly priced tranches and Weibo Corp.’s 1.25% convertible notes due 2022 continued to dominate activity in the secondary market.

There was about $73 million on the tape early in Friday’s session with the three convertible notes from the two issuers accounting for the lion’s share of the reported volume, a market source said.

The notes continued to improve on Friday.

YY’s 1.375% convertible notes due 2026 were the most actively traded issue of the day.

The notes were continuing to change hands around 101 as its equity sank early in Friday’s session.

There was about $16 million in reported volume early in the session.

The 0.75% convertible notes due 2025 were changing hands around 101.625 with $4 million in reported volume, a market source said.

YY’s ADSs traded down to $69.56, a decrease of 2.06%, shortly before 11 a.m. ET.

Weibo’s 1.25% convertible notes due 2022 also continued to improve. The notes traded up to 93.375 after closing Thursday at 93, sources said.

About $8 million of the bonds were on the tape early in the session.

Weibo’s ADSs traded as low as $42.20 early in the session but pared their losses and were changing hands around $43.01, a decrease of 0.02%, shortly before 11 a.m. ET.

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