Morning Commentary: Secondary market quiet; iQIYI convertibles in focus, lower outright

By Abigail W. Adams

Portland, Me., June 14 – Convertibles trading volume was viewed as decent at the start of Friday’s session. However, few names saw concentrated trading activity, and there was little significant movement, a market source said.

There was about $72 million on the tape about one hour into the session with volume expected to remain light for the remainder of the session as equities turned to red over increasing geopolitical tensions.

iQIYI Inc.’s 2% convertible notes due 2025 were the most actively traded issue early in Friday’s session with the notes trading down alongside equity.

The 2% notes dropped 1 point outright to 92.875 early in the session.

However, the notes were largely trading in line on a dollar-neutral, or hedged, basis.

The Beijing-based online entertainment service provider’s ADSs were down more than 2% early in the session.

They were changing hands at $17.85, a decrease of 2.61%, 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.