Morning Commentary: Convertibles secondary off to slow start; Cloudflare down outright

By Abigail W. Adams

Portland, Me., Aug. 16 – The convertibles secondary space was off to a slow start on Monday as equities launched the week in the red.

The Dow Jones industrial average was down 122 points, or 0.34%, the S&P 500 index was down 0.53%, the Nasdaq Composite was off 1.22% and the Russell 2000 index was 0.67% lower early in the session.

There was $63 million in reported volume about one hour into the session, according to a market source.

Cloudflare Inc.’s 0% convertible notes due 2026 was the only issue to see concentrated trading activity.

The 0% notes again traded down to a 98-handle as stock dropped alongside the broader markets.

The notes were changing hands at 98.625 versus a stock price of $118.71, according to a market source.

There was $13 million in reported volume.

Cloudflare’s stock traded down to $118.08, a decrease of 3.01%, shortly before 11 a.m. ET.

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