Morning Commentary: Western Digital, DocuSign convertibles active in early trading

By Abigail W. Adams

Portland, Me., Jan. 20 – The convertibles primary market remained quiet early in Wednesday’s session with all eyes on the upcoming inauguration of president-elect Joseph Biden.

While equity markets opened the day strong, the threat of violence continued to cast a shadow over the rally, a market source said.

There was $97 million on the tape about one hour into the session.

Western Digital Corp.’s 1.5% convertible notes due 2024 continued to see high volume.

The notes were wrapped around par in early trading, a source said.

There was almost $9 million of the bonds on the tape.

The investment-grade rated notes were trading for their yield, a source said.

The yield on the notes, “is basically the spread for IG,” a source said. “It’s a cash alternative.”

DocuSign Inc.’s recently priced 0% convertible notes due 2026 continued to gain on an outright basis as stock continued its upward momentum.

The 0% convertible notes were changing hands at 107.75 early in the session.

The bonds saw $7 million in reported volume.

DocuSign’s stock traded up to $260.16, an increase of 1.36%, shortly before 11 a.m. ET.

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