Morning Commentary: Convertible bonds see early rebound among Asia-based issuers

By Abigail W. Adams

Portland, Me., Oct. 25 – The convertibles primary and secondary markets were quiet early Tuesday as the market tone improved amid a rally in Treasury and equity markets.

The Dow Jones industrial average was up 223 points, or 0.67%, the S&P 500 index was up 1.14%, the Nasdaq Composite index was up 1.72% and the Russell 2000 index was up 2.59% shortly after 11 a.m. ET.

Some Asian names that were slaughtered in the previous session were on the rise amid Tuesday’s improved market sentiment.

ZTO Express’ 1.5% convertible notes due 2027 rose 3 points outright with its equity up more than 4.5% in intraday trading.

The 1.5% notes were changing hands at 83 early in the session.

ZTO’s equity was seen at $17.61, an increase of 4.83%, shortly after 11 a.m. ET.

The notes sank 11 points and contracted 3.5 points dollar-neutral on Monday amid a fire-sale in the ADR space following the results of China’s Communist Party Congress.

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