Morning Commentary: Snap convertible notes in focus, contract amid market pull-back

By Abigail W. Adams

Portland, Me., May 4 – It was another slow start in the convertibles secondary space with trading volume light amid a pull-back in equities.

Equity benchmarks launched the day firmly in the red with the tech sector again leading the sell-off.

The Dow Jones industrial average was down 243 points, or 0.7%, the S&P 500 index was down 1.13%, the Nasdaq Composite was down 2.26% and the Russell 2000 was down 1.32% shortly before 11 a.m. ET.

However, there was no clear catalyst for the sell-off.

Snap Inc.’s recently priced 0% convertible notes due 2027 became the latest No-No to fall victim to a pull-back in equities with the notes trading off on an outright and dollar-neutral basis.

The 0% convertible notes traded down to 98.25 bid, 98.75 offered, a source said.

The notes contracted about 0.375 point on the move down.

Snap’s stock traded down to $55.62, a decrease of 6%, shortly before 11 a.m. ET.

Stock was down alongside the broader market.

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