Morning Commentary: ZTO Express convertible notes flat in active secondary trading

By Abigail W. Adams

Portland, Me., Aug. 30 – The convertible secondary space saw a minor uptick of activity on Tuesday as equity markets extended their losses on renewed rate and recession concerns.

Following a strong open, the Dow Jones industrial average sank 305 points, or 0.95%, the S&P 500 index was down 1.11%, the Nasdaq Composite index was down 1.12% and the Russell 2000 index was down 1.22%.

There was $67 million on the tape about one hour into the session, a source said.

While still light, volume was nearly double the amount on the tape on Monday.

However, few names saw concentrated trading activity.

ZTO Express’ recently priced 1.5% convertible notes due 2027 were the most actively traded notes early in the session although the notes were largely flat.

The convertibles were changing hands at 102.25 versus an equity price of $25.91 early in the session, according to a market source.

There was $6 million in reported volume.

ZTO’s stock remained in the green early Tuesday despite the continued heaviness of the market.

After trading as high as $26.50 out of the gate, stock was changing hands at $25.49 shortly before 11 a.m. ET.

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