Matthews South

Matthews South

  • About Us
  • Our Solutions
    • Debt
    • Equity
    • IPO
    • Pre-IPO Financing
    • Convertible & Call Spread
      • Call Spread Unwind
      • Liability Management
    • Share Repurchases
      • Accelerated Share Repurchase (ASR)
      • Enhanced Open Market Repurchase (eOMR)
    • Capital Structure Review
  • Our Clients
    • Client List
    • Testimonials
  • Our Team
  • Video Library
  • Blog
  • Contact Us
  • Login

September Convertible Market Review

by Jared Kramer | October 3, 2019 | Convertible & Call Spread, Market Review

  • Total Issuance: September was the busiest month of the year, surpassing August. There was $7.3 billion of convertible bond issuance over 18 transactions, bringing the 2019 total to $34.2 billion (vs. $35.7 billion for the same period in 2018). There was also $4.75 of mandatory convertibles issued by Broadcom and NextEra Energy, bringing the combined total to more than $12 billion of paper in the month.
  • Reduced-Market Risk Execution: Possibly reflecting an adaptation to the macro choppiness of the last several months, September saw an unusually high proportion of overnight deals (5 of the 18 debt deals, plus NEE’s mandatory). In some deals, the stock price dislocation was offset by a repurchase of stock (Etsy) or existing convertibles (Harmonic). In several other instances, issuers used “over the wall” marketing processes to generate demand prior to an accelerated overnight offering. RH (Restoration Hardware) launched its transaction mid-day, which also reduced market exposure.

Filed Under: Convertible & Call Spread, Market Review

Contact Us

To learn more about our solutions or to schedule a demo of our software, please contact us by filling out the form below, or email us at info@matthewssouth.com.






    • Matthews South LLC is a member of FINRA and SIPC
    • Brokercheck
    • © Matthews South, Inc. 2024
    • Privacy Policy
    • Additional Disclosure
    • Testimonials may not be representative of the experience of other customers and are not a guarantee of future performance or success