Morning Commentary: Convertibles secondary active as equities rebound; Wayfair in focus

By Abigail W. Adams

Portland, Me., Aug. 16 – The convertible secondary space was active early in Friday’s session as equity markets rebounded after a volatile week.

There was $99 million in reported volume on the tape a little over one hour into Friday’s session with several of the deals to price over the past week in focus.

Wayfair Inc.’s recently priced 1% convertible notes due 2026 were in focus with the notes rebounding alongside stock.

The 1% notes were up almost 2 points outright to 101.5, a market source said. More than $15 million of the bonds were on the tape less than one hour into Friday’s session.

The notes closed Thursday at 99.75, sources said.

After a brutal sell-off over the past two session, which saw stock fall by 14%, Wayfair stock was on the mend on Friday.

Stock traded up to $109.89, an increase of 2.38%, shortly before 11 a.m. ET.

Akamai Technologies Inc.’s newly priced 0.375% convertible notes due 2027 were also active early in Friday’s session with the notes continuing to climb their way back to par.

The notes were changing hands just shy of 99 early in Friday’s session, according to a market source.

They closed Thursday at 98.25.

Akamai stock was also on the rebound early Friday. Stock traded up to $87.10, an increase of 2.45%, shortly before 11 a.m. ET.

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