Morning Commentary: Convertibles secondary market quiet as equities waver early

By Abigail W. Adams

Portland, Me., Sept. 6 – It was a slow return from the holiday weekend in the convertibles secondary space with few names on the tape as equity markets struggled to find direction early in the session.

A green open for equities quickly gave way to selling with indexes in the red shortly after the opening bell.

However, they pared their losses and turned mixed shortly before 11 a.m. ET.

The Dow Jones industrial average was up 0.20%, the S&P 500 index was up 0.19%, the Nasdaq Composite index was down 0.19% and the Russell 2000 index was down 0.57%.

There was $39 million on the tape about one hour into the session with few names seeing concentrated trading activity.

Okta Inc.’s 0.15% convertible notes due 2025 were the most actively traded issue early in the session.

The notes were changing hands at 86.125 versus a stock price of $62.80.

The yield on the notes was about 5.125%.

There was $5 million in reported volume.

Okta’s stock was trading at $62.06, a decrease of 3.93%, shortly before 11 a.m. ET.

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