Morning Commentary: Ensco convertibles in focus post-merger; Bilibili back below par

By Abigail W. Adams

Portland, Me., April 12 – The convertibles secondary space saw higher trading volume early Friday with $95 million on the tape a little over one hour into the session.

However, volume was expected to taper off into the afternoon.

Ensco plc’s 3% convertible notes due 2024 were in focus early in the session with the notes continuing to post gains.

The 3% notes were up 0.5 point outright to trade just north of 86 with the yield now 6.4%, according to a market source.

More than $6 million of the bonds were on the tape early in the session.

Ensco recently announced the completion of its merger with Houston-based Rowan with the new combined entity Ensco Rowan plc.

Bilibili Inc.’s 1.375% convertible notes due 2026 were also active early in Friday’s session with the notes poised to close the week below par.

The 1.375% notes were seen changing hands at 99.5 with $4 million of the bonds on the tape early in the session.

Bilibili stock was $17.88, an increase of 2.35% shortly before 11 a.m. ET.

The notes dropped back below par on Wednesday and were changing hands at 98.5 on Thursday.

While down outright, the notes continued to trade in line on a dollar-neutral basis and have maintained their 1 point dollar-neutral expansion since hitting the market on April 3.

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