Morning Commentary: Convertibles trading volume light; Caesars Entertainment active

By Abigail W. Adams

Portland, Me., Aug. 14 – Trading volume remained light in the convertible secondary market on Tuesday with about $45 million on the tape early in the session.

Caesars Entertainment Corp.’s 5% convertible notes due 2024 were the most actively traded early Tuesday with about $5 million of the bonds on the tape, a market source said.

The equity sensitive bonds were trading outright at 158, the source said. Caesars’ stock was up about 1% in early trading on Tuesday.

Booking Holdings Inc.’s 0.9% convertible notes due 2021 were also volume leaders with about $3 million of the bonds on the tape, a market source said. The bonds were seen changing hands at 113.875, a market source said. Booking’s stock was down less than 0.5% early Tuesday.

With trading volume light, all eyes remain on the primary market to see what the week will bring for new paper.

While some small deals were expected to come forward this week, no new deals were announced on Monday.

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