Morning Commentary: Convertibles secondary trading active; Booking Holdings in focus

By Abigail W. Adams

Portland, Me., Oct. 31 – The convertible secondary space was again active early in Wednesday’s session with more than $161 million on the tape.

However, trading volume was largely driven by end-of-the month activity, a market source said.

Booking Holdings Inc.’s 0.35% convertible notes due 2020 topped the volume charts with more than $27 million on the tape a little over one hour into Wednesday’s session.

The notes were up about 4 points outright to trade around 145.25 with stock up about 2% early in the session.

Weatherford International Ltd.’s 5.875% convertible notes due 2021 remained active in secondary trading with the notes improving on an outright basis as the company’s stock rebounded.

The notes traded up to 77.5 with stock up more than 6% to $1.34 early Wednesday. More than $11 million of the bonds were on the tape early Wednesday. The notes traded as low as 73 on Tuesday but closed the day around 76.5, sources said.

The notes have seen heavy trading volume since the oil and natural gas services company released earnings. The notes dropped 10 points dollar-neutral over Monday and Tuesday, sources said.

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