Morning Commentary: BlackLine convertible notes continue to rise; Coinbase lifted

By Abigail W. Adams

Portland, Me., Oct. 15 – There was an eclectic mix of convertible bonds trading early Friday as equity markets extended their gains from the previous session.

The Dow Jones industrial average was up 292 points, or 0.84%, the S&P 500 index was up 0.60%, the Nasdaq Composite was up 0.35% and the Russell 2000 index was up 0.74% shortly before 11 a.m. ET.

JPMorgan Chase Financial Co. LLC’s 0.25% cash-settled equity-linked notes due 2023 tied to Voya Financial, Inc. were active early in the session.

The 0.25% notes were up 0.5 point outright to trade at 112.875, a market source said.

There was $6 million in reported volume.

Voya’s stock was changing hands at $68.62, an increase of 0.87%, shortly before 11 a.m. ET.

The notes were most likely trading in response to JPMorgan’s blow-out earnings earlier in the week, a source said.

While the equity-linked notes are tied to Voya’s stock, their valuation is also based on JPMorgan’s credit.

BlackLine Inc.’s 0% convertible notes due 2026 were again active in the secondary space with the notes continuing their upward momentum.

The 0% convertible notes were changing hands just north of 101.25 versus a stock price of $125.48 early in the session.

There was about $6 million in reported volume.

BlackLine’s stock traded as high as $125.96 early in the session. They were changing hands at $124.34, an increase of 0.34%, shortly before 11 a.m. ET.

While the notes saw light volume, Coinbase Global Inc.’s 0.5% convertible notes due 2026 continued to gain on an outright basis with stock skyrocketing over the past week.

The 0.5% convertible notes were up another 2 points outright with stock up more than 3% early in the session.

The 0.5% notes were changing hands at 108.25 versus a stock price of $269.69 early in the session.

There was $2 million in reported volume.

Coinbase’s stock traded as high as $273.24 shortly after the market open. It was changing hands at $268.40, an increase of 3.33%, shortly before 11 a.m. ET.

Coinbase’s stock has gained more than 7% over the past week as bullish momentum has returned to the crypto space.

Bitcoin was flirting with $60,000 early Friday with bullish options calls spiking amid the expected imminent Securities and Exchange Commission approval for a futures-based cryptocurrency ETF.

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