Morning Commentary: Convertible secondary quiet; Chegg notes, Sabre preferreds active

By Abigail W. Adams

Portland, Me., Aug. 21 – After a flurry of activity driven by an influx of more than $4 billion of new convertible bonds over the week, the secondary space was quiet early Friday as activity surrounding the new deals tapered off.

Convertible bonds saw about $74 million in reported volume a little over one hour into the session with few names seeing concentrated trading activity, according to a market source.

Chegg Inc.’s 0% convertible notes due 2026 were one of the volume movers early Friday with $6 million on the tape.

However, the notes were little changed.

They traded up about 0.25 point outright to 102.875 with stock up early in the session.

Stock was changing hands at $78.30, an increase of 0.54%, shortly before 11 a.m. ET.

Sabre Corp.’s 6.5% series A mandatory convertible preferred stock remained active and was improving outright early Friday.

However, the preferreds remained below their issue price.

The 6.5% mandatory preferred stock traded up to $98.50 early Friday as stock improved.

Sabre stock was changing hands at $6.92, an increase of 1.69%, shortly before 11 a.m. ET.

The preferred stock dropped to a $97-handle on its market debut on Thursday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.