Morning Commentary: Splunk steady in early secondary focus; NIO’s new convertibles drop

By Cristal Cody

Tupelo, Miss., Sept. 25 – With the convertibles primary market quiet at the start of Monday’s session, the secondary space also opened fairly light with a few names making ripples in headlines, sources said.

While there were “no deals in the market right now,” a couple of other names attracted attention in the convertibles market early Monday, a source said.

Secondary activity was gearing up with $108 million of reported volume nearly an hour after the market opened.

Stocks were mixed as the session got underway.

The S&P 500 index rose 0.16% and the Nasdaq was up 0.24%, while the Dow Jones industrial average fell 0.16% and the Russell 200 index improved 0.33%.

Trading in the convertibles space was spread out among names with Splunk Inc.’s convertible notes attracting the bulk of the early morning trade on $4 million of volume.

The 1.125% convertible notes due 2025 traded mostly unchanged at just under 107 versus a stock price of $144.88, a source said.

Splunk’s shares were trading up 0.02% by late morning at $145.10.

NIO declines

NIO Inc.’s new 3.875% convertible senior notes due 2029 slid over 2 points to 98 versus a stock price of $89.97 following news reports the company had denied plans for another capital raise, a source said.

Volume totaled $2.25 million.

The news comes after NIO priced $1 billion of convertible notes in two tranches last week.

NIO’s stock was trading down 2.17% late morning at $8.34.

© 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.