Convertibles trading quiet; Tyler Industries, Big Commerce active; Pebblebrook falls

By Abigail W. Adams

Portland, Me., Aug. 29 – It was a sleepy day in the convertibles secondary space on Monday with trading volume thin and little price movement in the names that did trade, a source said.

“It is going to be a quiet week,” a source said.

Market players were cashing in on vacation time ahead of the Labor Day weekend.

While the convertibles primary market surprised with a late burst of summer activity the previous week, sources do not expect to see more new paper until after the Labor Day holiday, especially with risk assets again taking a hit on renewed rate and recession concerns.

Equity indexes extended losses on Monday after heavy selling following last Friday’s hawkish speech from Federal Reserve chair Jerome Powell.

The Dow Jones industrial average closed Monday down 184 points, or 0.57%, the S&P 500 index closed down 0.67%, the Nasdaq Composite index closed down 1.02% and the Russell 2000 index closed down 0.89%.

There was $32 million in reported volume about one hour into the session and $200 million on the tape about one hour before the market close.

There was no clear theme to the names on the tape during Monday’s session with end-of-month cleanup the driving force of activity, a source said.

Tyler Technologies Inc.’s 0.25% convertible notes due 2026 was the top traded issue in the space although with little movement in price.

BigCommerce Holdings Inc.’s 0.25% convertible notes due 2026 were also active on the tape.

Pebblebrook Hotel Trust’s 1.75% convertible notes due 2026 fell in light volume with REITs again under pressure from rising rates.

Tyler in focus

Tyler Technologies’ 0.25% convertible notes due 2026 were the most actively traded issue during Monday’s session.

However, there was little movement in the notes in terms of price.

The 0.25% notes were changing hands at 101.25 versus a stock price of $378.54 in the late afternoon, according to a market source.

There was $14.5 million in reported volume.

Tyler Technologies’ stock traded to a high of $379.36 and a low of $372.94 before closing the day at $375.96, a decrease of 0.61%.

BigCommerce active

BigCommerce’s 0.25% convertible notes due 2026 were largely flat in active trading on Monday.

The 0.25% notes were seen just shy of 74 versus a stock price of $17.05 in the late afternoon.

The yield on the notes was 7.836%.

There was $9 million in reported volume.

BigCommerce’s stock traded to a high of $17.50 and a low of $16.63 before closing the day at $16.64, a decrease of 3.93%.

The e-commerce software company’s 0.25% convertible notes have been stuck in the low 70s since June.

Pebblebrook under pressure

Pebblebrook Hotel’s 1.75% convertible notes were under pressure on Monday with REITs once again squeezed by rising rates.

The 1.75% notes sank 4 points outright.

They were trading at 95 in the late afternoon.

However, volume in the small, illiquid issue was light with $4 million on the tape.

Pebblebrook’s stock traded to a low of $17.81 and a high of $18.27 before closing the day at $18.11, a decrease of 1.31%.

Mentioned in this article:

BigCommerce Holdings Inc. Nasdaq: BIGC

Pebblebrook Hotel Trust NYSE: PEB

Tyler Technologies Inc. NYSE: TYL

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