Morning Commentary: Opendoor convertibles eyed, hit highest outright level since pricing

By Abigail W. Adams

Portland, Me., Oct. 18 – The convertibles primary market remained dormant early Monday, as it has been for the past two weeks.

While October was expected to be an active month with several deals in the pipeline, market volatility combined with earnings season blackouts have dampened primary market activity.

However, sources do expect to see some activity before the week is through.

Meanwhile, the secondary space saw an active start to the day as equity markets struggled to find direction.

The Dow Jones industrial average was down 53 points, or 0.15%, the S&P 500 index was up 0.08%, the Nasdaq Composite was up 0.26% and the Russell 2000 index was down 0.01% shortly before 11 a.m. ET.

There was $125 million on the tape although few names saw concentrated trading activity.

However, Opendoor Technologies Inc.’s 0.25% convertible notes due 2026 were in focus with the notes hitting their highest outright level since pricing.

The 0.25% notes were changing hands at 143.875 versus a stock price of $24.97 early in the session.

There was about $9 million in reported volume.

Opendoor’s stock was trading at $24.70, an increase of 5.4%, shortly before 11 a.m. ET.

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