Morning Commentary: Luckin Coffee convertibles in focus; MongoDB gains in early trading

By Abigail W. Adams

Portland, Me., Jan. 13 – The convertibles secondary space opened Monday with heavy trading volume with accounts most likely raising funds and making room for the flurry of new issues expected before the earnings season blackout period begins, sources said.

There was $160 million in reported volume on the tape less than one hour into Monday’s session.

The new paper to hit the aftermarket last Friday was in focus with both continuing to improve.

Luckin Coffee Inc.’s 0.75% convertible notes due 2025 saw “massive” trading volume with more than $32 million on the tape less than one hour into the session.

The notes continued to gain as underlying equity soared.

The 0.75% notes traded just shy of 105.5, a market source said. Luckin’s ADS traded as high as $46.29 at the market’s open but came in to trade at $44.66, shortly before 11 a.m. ET.

The 0.75% notes saw a 4-point dollar-neutral expansion on their market debut on Friday.

MongoDB Inc.’s newly priced 0.25% convertible notes due 2026 also continued to gain in active trading.

The 0.25% notes traded just north of 104 with more than $11 million in reported volume, according to a market source.

The notes were changing hands on a 102 handle on their market debut last Friday and were expanded about 2 points dollar-neutral.

MongoDB’s stock was changing hands at $153.84, an increase of 3.09%, shortly before 11 a.m. ET.

While the new paper remained in focus in the secondary space, several biotech names were also on the tape as J.P. Morgan’s health care conference kicks off in San Francisco.

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