Morning Commentary: DigitalOcean, Affirm convertible notes in focus as equities waver

By Abigail W. Adams

Portland, Me., Nov. 23 – The convertibles secondary space saw another active start as the sell-off in the tech sector resumed its pace after showing signs of a rebound shortly after the opening bell.

The Dow Jones industrial average was down 65 points, or 0.19%, the S&P 500 index was off 0.63% and the Nasdaq Composite was down 1.48% shortly before 11 a.m. ET after each briefly flirted with positive territory.

There was $112 million in reported convertibles secondary trading volume about one hour into the session with trading activity concentrated in recent issues.

Affirm Holdings Inc.’s 0% convertible notes due 2026 and DigitalOcean Inc.’s 0% convertibles due 2026 remained active as the companies’ stock gained early in the session only to again succumb to selling pressure.

Affirm’s 0% convertible notes were changing hands at 98.75 versus a stock price of $125.49 early in the session.

There was about $5 million in reported volume.

Affirm’s stock traded to a high of $129.63 shortly after the opening bell. It was changing hands at $120.60, a decrease of 2.36% shortly before 11 a.m. ET.

DigitalOcean’s 0% convertible notes were trading at 97.25 versus a stock price of $102.97 early in the session.

There was about $6 million in reported volume.

DigitalOcean’s stock traded to a high of $104.86 shortly after the opening bell. It was changing hands at $96.57, a decrease of 5.98%, 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.