Morning Commentary: Sea convertibles in focus early, trade higher; Opendoor notes active

By Abigail W. Adams

Portland, Me., Oct. 13 – The convertibles secondary space continued to see an uptick of activity on Wednesday with equity markets mixed following the latest Consumer Price Index report, which was largely in line with expectations.

Tech stocks outperformed with the Nasdaq Composite the only index in the green as the 10-year Treasury yield fell back to 1.539%.

The Dow Jones industrial average was down 167 points, or 0.49%, the S&P 500 index was down 0.2%, and the Russell 2000 index was down 0.16% shortly before 11 a.m. ET.

However, the Nasdaq Composite was up 0.28%.

There was $127 million in reported volume a little over one hour into the session with the usual players continuing to top the volume charts.

Sea Ltd.’s 0.25% convertible notes due 2026 again topped the volume charts with the notes gaining alongside the company’s equity.

The 0.25% notes were up another 1.5 points with the company’s equity up more than 5%.

The notes were changing hands at 103.5 versus an equity price of $341 early in the session.

There was more than $21 million in reported volume.

Sea’s American Depositary Shares were changing hands at $343.85, an increase of 5.83%, shortly before 11 a.m. ET.

Opendoor Technologies Inc.’s 0.25% convertible notes due 2026 were also active early in the session.

Opendoor’s 0.25% convertible notes were changing hands at 137.5 versus a stock price of $23.21 early in the session.

While Opendoor’s stock opened the day in the red, it erased its losses as the session progressed and was flat at $23.25 shortly before the 11 a.m. ET.

While in the red early Wednesday, Opendoor’s stock has been “unstoppable” recently, a source said.

Stock has skyrocketed more than 30% over the past month.

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