Morning Commentary: Convertibles follow equities lower; ServiceNow, Tesla eyed

By Stephanie N. Rotondo

Seattle, June 27 – Activity in the convertible bond market on Tuesday was only slightly higher than in Monday’s session, a market source reported.

Still, there was little news out to act as a catalyst, although there did appear to be weakness in the convertible space, as in the stock markets.

ServiceNow Inc.’s 0% convertible notes due 2022 bucked the trend, however, rising almost ½ point to around 103.75, according to one source.

The company’s shares (NYSE: NOW) were slightly lower in early trading.

Meanwhile, Tesla Inc.’s convertibles were feeling under the weather, given pressure in both the automotive and technology arenas.

A source pegged the 2.375% convertible notes due 2022 around 128.75, a loss of over ½ point. The 0.25% convertible notes due 2019 were meantime seen just south of 117, off about ¼ point.

Tesla’s equity (Nasdaq: TSLA) was down $1.90 at mid-morning, trading at $375.59.

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