Morning Commentary: Pinduoduo convertible notes move lower on quiet morning

By Abigail W. Adams

Portland, Me., March 11 – It was another quiet morning in the convertibles secondary space on Friday with few names on the tape on a mixed day so far for equities.

While futures pointed to a strong open, sellers moved in at the opening bell driving the Nasdaq Composite and Russell 2000 index into negative territory.

The Dow Jones industrial average was up 212 points, or 0.65%, and the S&P 500 index was up 0.25% while the Nasdaq Composite was down 0.28% and the Russell 2000 index was down 0.43% shortly before 11 a.m. ET.

There was about $50 million on the tape one hour into the session.

Pinduoduo Inc.’s 0% convertible notes due 2025 were the only convertibles to see more than $5 million in reported volume.

The 0% notes continued to move lower alongside the company’s equity.

The notes were changing hands at 85.5 versus an equity price of $33.99 early in Friday’s session, according to a market source.

The yield on the notes was now 9.368%.

There was $5 million on the tape.

Pinduoduo’s American Depositary Shares were changing hands at $32.89, a decrease of 8.03%, shortly before 11 a.m. ET.

Pinduoduo’s 0% convertible notes were also active and taking a hit during Thursday’s session with the ADRs of China-based companies plummeting amid renewed delisting threats.

© 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.