Morning Commentary: Equity sell-off continues; Square, Wayfair convertibles active

By Abigail W. Adams

Portland, Me., Nov. 20 – There was light trading volume in the convertibles secondary space as the sell-off in equities continued on Tuesday.

The Dow Jones industrial average dropped 560 points less than one hour into Tuesday’s session, deepening losses from the day before. The index had rebounded a short time later and was down 355 points late morning.

About $71 million of convertible bonds were on the tape early in Tuesday’s session with most of the activity opportunistic trading, a market source said.

Square Inc.’s convertible bonds were active as stock stood poised for a volatile session.

The mobile financial services company’s 0.5% convertible bonds due 2023 traded as low as 104.625 shortly after the opening bell but traded up to 109.5 about one hour into the session, a market source said.

The 0.375% convertible notes due 2022 dropped almost 50 points outright early in the session to trade as low as 254.5 but climbed alongside stock to trade at 270 a little more than one hour into the session.

Square stock was down 11% in pre-market trading on Tuesday but pared its losses after the opening bell.

Stock was $62.08, a decrease of 1.41% shortly before 11 a.m. ET.

Wayfair Inc.’s recently priced 1.125% convertible notes due 2024 were down on an outright basis early in the session. The notes changed hands as low as 96.125, a market source said.

Wayfair stock was also volatile early Tuesday. Stock was down as much as 6% shortly after the opening bell but traded up to $86.35, an increase of 4.55%, shortly before 11 a.m. ET.

© 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.