Morning Commentary: Convertibles quiet as equities rebound; SoFi Technologies in focus

By Rebecca Melvin

Concord, N.H., Oct. 5 – Convertibles were quiet and remained softer on Tuesday, lagging a reversal in stock trading early Tuesday, according to a market source.

“Market players seemed hesitant to jump back in and start adding, so the recovery was more muted,” the source told Prospect News.

Equities were rebounding from a big slide on Monday. Also in the broader markets, the high-yield market opened up 1/8 point. The 10-year Treasury yield gained about 1.5 basis points to 1.49%, and West Texas Intermediate crude gained 1.11% to $78.47 per barrel.

Among names that were seeing some activity during a generally quiet morning was the new issue of SoFi Technologies Inc. It was fairly active and continued to hold the attention of secondary traders.

SoFi Technologies priced five-year zero-coupon convertible notes with an 40% initial conversion premium last week. They were marked as high as 105 in several large trades on Monday before closing out at 103.5.

SoFi’s shares were up 50 cents, or 3.1%, to $16.59 at late morning on Tuesday.

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