Morning Commentary: NIO convertible notes active on quiet morning

By Abigail W. Adams

Portland, Me., Sept. 29 – The convertibles secondary space was quiet but firm early Friday as markets digested the latest round of macro data.

Equity indexes launched the day strong following the latest Personal Consumption Expenditure report, which reflected a slower pace of inflation than expected.

The Dow Jones industrial average was up 91 points, or 0.27%, the S&P 500 index was up 0.63%, the Nasdaq Composite index was up 1.14% and the Russell 2000 index was up 0.35% shortly before 11 a.m. ET.

There was $63 million in reported volume about one hour into the session with few names seeing concentrated trading activity.

NIO Inc.’s recently priced convertible notes remained in focus as the company’s equity shirked off a volatile week to add to the strong gains of the previous session.

The Shanghai-based electric vehicle maker’s 3.875% convertible notes due 2029 and 4.625% convertible notes due 2030 continued to move higher alongside its equity.

The 3.875% convertible notes were changing hands at 103.5 versus an equity price of $9.13 early in the session, a source said.

There was $5 million in reported volume.

The 4.625% convertible notes traded at 103.875 versus an equity price of $9.10.

There was also $5 million in reported volume.

NIO’s American Depositary Shares traded as high as $9.22 early in the session before coming in to trade at $8.94, an increase of 0.28%, shortly before 11 a.m. ET.

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