Morning Commentary: Teladoc expands in light trading volume

By Abigail W. Adams

Portland, Me., May 7 – The convertibles space was off to a Monday start with not much on the tape early in the session.

Teladoc Inc.’s newly priced 1.375% convertible notes due 2025 and outstanding 3% convertible notes due 2022 were the major volume movers with $3 to $4 million of bonds on the tape, a market source said.

The 1.375% notes continued to improve on an outright and dollar-neutral basis with the stock up early in Monday’s session. They were seen trading up to 102.25 outright and were up 0.375 point on swap, a market source said.

The 3% notes were seen trading at 122.

Teladoc stock was up to $42.50, an increase of 0.71% early in the session.

The 1.375% notes made their market debut on Friday. While the notes hovered just above par out of the gate, they improved Friday afternoon and were seen expanded about 0.5 point dollar-neutral.

Five9 Inc.’s newly priced 0.125% convertible notes due 2023, which also made their market debut on Friday, were not seen on the tape early in Monday’s session.

Equities were off to a strong start on Monday with the Dow Jones Industrial average up 162 points about an hour after the opening bell.

However, the convertibles space was in “a wait and see mode,” early in the session, a market source said. “It’s kind of a ‘what do we want to do today?’ type of day.”

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