Morning Commentary: Coinbase convertible notes give back gains on quiet morning

By Abigail W. Adams

Portland, Me., May 16 – It was a quiet start to the week in the convertibles secondary space as equity markets launched the day in the red.

The Dow Jones industrial average was down 156 points, or 0.44%, the S&P 500 index was down 0.72%, the Nasdaq Composite index was down 1.37% and the Russell 2000 index was down 0.14% shortly before 11 a.m. ET.

Coinbase Global Inc.’s 0.5% convertible notes due 2026 were again under pressure early in the session after a significant rebound on Friday.

The 0.5% notes were down about 2 points outright as stock again slid alongside the price of Bitcoin.

The notes were changing hands at 66.75 early in the session although volume in the name was light.

Coinbase’s stock was changing hands at $60.73, a decrease of 10.52%, shortly before 11 a.m. ET.

Stock again cratered on Monday after nearly wiping out its post-earnings losses in a spectacular rebound on Friday.

Stock closed Friday up 16% as Bitcoin rebounded from a flash crash and investors reexamined the crypto-currency exchange’s fundamentals.

However, stock was again under pressure with Bitcoin unable to hold $30,000 as a support.

Bitcoin was changing hands at $29,494.40, a decrease of 5.71% shortly before 11 a.m. ET.

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