Morning Commentary: LivePerson convertible notes rebound in early secondary trading

By Abigail W. Adams

Portland, Me., March 1 – It was an active morning in the convertibles secondary space as volatility continued to roil equities amid Russia’s military offensive against Kyiv.

Equity indexes again turned negative as prospects for a ceasefire diminished.

The Dow Jones industrial average was down 452 points, or 1.31%, the S&P 500 index fell 0.91%, the Nasdaq Composite fell 0.65% and the Russell 2000 index fell 1.07% shortly before 11 a.m. ET.

There was $84 million in reported volume about one hour into the session with topical and earnings- related news driving trading activity.

LivePerson Inc.’s 0% convertible notes due 2026 rebounded as stock jumped following news Starboard Value LP had taken a stake in the company.

The 0% convertible notes rose 5 points outright with stock up more than 17%.

They were changing hands at 77.75 versus a stock price of $23.80 in the late afternoon. There was $9 million in reported volume.

LivePerson’s stock was trading at $23.88, an increase of 17.73%, shortly before 11 a.m. ET.

LivePerson’s 0% convertible notes tanked as stock hit a 52-week low of $16 following disappointing earnings.

However, stock recouped its post-earnings losses on Tuesday after Starboard disclosed it had taken an 8.5% stake in the company.

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