Morning Commentary: Convertibles secondary quiet; Illumina, Western Digital active

By Abigail W. Adams

Portland, Me., July 15 – It was a summer Monday in the convertibles secondary space with little on the tape about one hour into Monday’s session, according to a market source.

There was about $41 million in reported volume with no particular focus to the trading activity.

Illumina Inc.’s 0.5% convertible notes due 2021 and Western Digital Corp.’s 1.5% convertible notes due 2024 were again the most actively traded issues in the secondary space.

Both issues were also in focus on Friday.

Illumina’s 0.5% convertible notes again traded down on an outright basis as stock continued its downward trajectory.

The 0.5% convertible notes were changing hands at 134.625, according to a market source. More than $4.6 million changed hands in a single trade.

Illumina stock traded down to $301.24, a decrease of 1.25%, shortly before 11 a.m. ET.

Stock continued its downward momentum after plummeting more than 16% on Friday.

Illumina stock has been on the decline since Illumina reduced its full-year guidance and previewed its second-quarter revenue, which missed analyst expectations.

Western Digital’s 1.5% convertible notes due 2024 were again active early in Monday’s session.

The notes were changing hands at 92.875 with more than $4.5 million on the tape, a market source said.

Western Digital stock was $54.74, a decrease of 1.01%, shortly before 11 a.m. ET.

However, the notes were trading for their yield, which was about 3.19%, a source said.

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