Morning Commentary: Convertibles secondary active ahead of Fed announcement; Unity eyed

By Abigail W. Adams

Portland, Me., Jan. 26 – The convertibles secondary space saw an active start to Wednesday’s session with equity markets opening the day strong as the Federal Reserve’s highly anticipated announcement loomed.

While equity indexes came in after launching the day with 1% to 2% gains, they remained firmly in positive territory a little more than one hour into the session.

The Dow Jones industrial average was up 157 points, or 0.46%, the S&P 500 index was up 0.93%, the Nasdaq Composite was up 1.46% and the Russell 2000 index was up 1.12% shortly before 11 a.m. ET.

There was over $100 million in reported convertible bond trading about one hour into the session.

“The panic seems to have subsided,” a source said. Holders seeking to offload some positions may have been using the bump in equities early Wednesday as an opportunity.

Unity Software Inc.’s 0% convertible notes due 2026 was active early in the session as stock popped at the open before turning negative.

The 0% convertible notes gained about 0.875 point outright with stock up more than 5% at the open.

They were changing hands at 84.125 versus a stock price of $107.25 early in the session, according to a market source.

There was $10 million in reported volume.

Unity Software’s stock traded to a high of $109.62 before plunging into negative territory. Stock was trading at $102.07, a decrease of 1.89%, shortly before 11 a.m. ET.

© 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.