Convertibles trading light; Vishay, DISH, equity-linked notes tied to Voya active

By Abigail W. Adams

Portland, Me., July 3 – Trading volume in the convertible space remained light on Tuesday as the market closed down early for the Fourth of July holiday mid-week.

Trading volume was $78 million early in the session and reached $128 million shortly before the market close, sources said.

“It’s more than I thought it would be,” a market source said.

The trading volume was largely due to a shuffle in retail balances, another source said.

There were only about four issues with more than $5 million on the tape shortly before the market’s close.

Vishay Intertechnology Inc.’s 2.25% convertible notes due 2025 were the most active of the day with $5.6 million on the tape by late afternoon.

The notes reached their highest outright price on Tuesday since hitting the market in early June.

DISH Network Corp.’s 3.375% convertible notes due 2026 also saw some action with about $5.5 million of the bonds changing hands.

JPMorgan Chase Financial Co. LLC’s most recently priced 0.25% cash-settled equity-linked notes due 2023 tied to Voya Financial, Inc. stock, and BofA Finance LLC’s 0.25% cash-settled equity-linked notes due 2023 tied to Voya stock were also among Tuesday’s volume movers.

JPMorgan’s 0.25% notes saw $2.5 million and BofA’s 0.25% notes saw $5.3 million on the tape shortly before the market close.

“Today’s a washout,” a market source said.

Vishay’s new heights

Vishay’s 2.25% convertible notes due 2025 jumped to their highest outright price on Tuesday since hitting the market on June 8.

The notes were seen up about 2.5 points to trade north of 101, according to a market source.

They were seen trading at 101.137 versus an equity price of $24.75 shortly before the market close. There were about eight trades of the notes during Tuesday’s session.

Vishay stock closed Tuesday at $24.40, an increase of 3.17%.

The 2.25% convertible notes have largely traded just above or just below par since their market debut, according to Trace data.

However, they dipped into the 98 range in the last days of June with the stock down.

DISH active

DISH’s 3.375% convertible notes were also among the few issues to see more than $5 million in trades on Tuesday.

The notes were seen trading at 95.546 versus an equity price of $33.25 shortly before the market close.

The 3.375% notes traded up to 98.5 in small trades on Monday but closed Monday with large trades in the 95 range, according to Trace data.

Which Voya

JPMorgan’s most recently priced 0.25% cash-settled equity linked notes and BofA’s 0.25% notes tied to Voya saw some trading action on Tuesday.

“There’s some jockeying between them,” a source said.

JPMorgan’s 0.25% notes were seen trading at 95.75 versus an equity price of $42.45 on Tuesday. The notes, which priced on April 24, have steadily traded down since mid-June as Voya stock slipped.

JPMorgan’s 0.25% cash-settled equity linked notes tied to Voya, which priced on Jan. 30, were not seen on the tape on Tuesday.

They were last seen trading on June 29 at 90, according to Trace data.

BofA’s 0.25% notes were trading between 93.5 and 93.75 on Tuesday with about $5.3 million changing hands in three trades, according to a market source.

The notes have largely languished below par since pricing in April. However, the 93 range is a new low for the notes.

Voya stock closed Tuesday at $46.95, a decrease of 0.59%.

Voya stock was $52.71 when JPMorgan priced its latest 0.25% notes. Voya stock was $50.72 when BofA priced its equity-linked notes on April 5.

Mentioned in this article:

DISH Network Corp. Nasdaq: DISH

Vishay Intertechnology Inc. NYSE: VSH

Voya Financial, Inc. NYSE: VOYA

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