Morning Commentary: MicroStrategy, Beyond Meat convertibles gain; trading quiet

By Abigail W. Adams

Portland, Me., March 26 – It was a quiet Friday morning in the convertibles secondary space as activity surrounding the deals to price during the week slowed.

While there was $175 million on the tape early in the session, there was a wide breadth to the trading activity with few names seeing concentrated activity, a source said.

While the notes remained severely under water, Beyond Meat Inc.’s 0% convertible notes due 2027 and MicroStrategy Inc.’s 0% convertible notes due 2027 were nominally improved in early trading.

Beyond Meat’s 0% convertible notes due 2027 were changing hands at 94.25 bid, 94.75 offered after closing the previous session at 93.625.

The notes were up 0.375 point on a dollar-neutral, or hedged, basis, a source said.

Beyond Meat’s stock traded as high as $132.19 early in Friday’s session before dropping into negative territory.

Stock was $129.51, a decrease of 0.17%, shortly before 11 a.m. ET.

The plant-based meat company priced a $1.15 billion issue of the 0% notes in early March.

MicroStrategy’s 0% convertible notes due 2027 were also making nominal improvements.

The 0% notes were changing hands at 81.25 bid, 82 offered as the company’s stock gained alongside the price of Bitcoin.

The notes were up 0.375 point on a dollar-neutral basis.

“It’s an $80 bond; it’s not going to move too much,” a source said.

MicroStrategy’s stock was changing hands at $633, an increase of 1.95%, shortly before 11 a.m. ET.

The company priced a $1.05 billion issue of the 0% notes in mid-February.

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