Morning Commentary: Convertibles secondary trading opens at a crawl; DigitalOcean active

By Abigail W. Adams

Portland, Me., Dec. 11 – The convertibles secondary space was at a crawl early Monday on a muted open for markets.

Equities indexes were either side of unchanged in early trade with few catalysts to move the market.

The Dow Jones industrial average was up 87 points, or 0.24%, the S&P 500 index was up 0.17%, the Nasdaq Composite index was down 0.08% and the Russell 2000 index was down 0.22% shortly before 11 a.m. ET.

There was $46 million in reported convertibles trading about one hour into the session with no name seeing more than $5 million in reported volume.

With activity surrounding the flurry of issuance the previous week diminishing, there was little action in the secondary space.

DigitalOcean Inc.’s 0% convertible notes due 2026 were among the most actively traded issue early in the session with $3.5 million on the tape.

However, the notes saw little movement in price.

The notes were changing hand at 79.625 versus a stock price of $31 early in the session, according to a market source.

The yield was just north of 7.75%.

DigitalOcean’s stock was seen at $31.24, an increase of 0.61%, shortly before 11 a.m. ET.

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