Morning Commentary: BofA synthetic notes tied to Voya active early; Coinbase gains

By Abigail W. Adams

Portland, Me., May 18 – It was an active morning in the convertibles secondary space as equity markets gave back their gains from Tuesday’s rally.

The Dow Jones industrial average was down 553 points, or 1.68%, the S&P 500 index was down 1.94%, the Nasdaq Composite was down 1.99% and the Russell 2000 index was down 1.21% shortly before 11 a.m. ET.

There was $143 million on the tape about one hour into the session although only a handful of names saw concentrated trading activity.

BofA Finance LLC’s 0.25% cash-settled equity-linked notes due May 1, 2023 tied to Voya Financial, Inc. saw heavy volume early in the session.

The short-duration notes were changing hands at 105.75 early in the session.

There was $10 million in reported volume although there were only two trades in the name, a source said.

Voya’s stock was trading at $65.58, an increase of 0.45% shortly before 11 a.m. ET.

Coinbase Global Inc.’s 0.5% convertible notes due 2026 also remained active in secondary activity.

The 0.5% notes were up 1.25 points outright as stock wavered between gains and losses.

The 0.5% notes were trading at 67.75 versus a stock price of $70.47 early in the session.

There was $7 million in reported volume.

Coinbase’s stock was changing hands at $69.02, a decrease of 1.60%, shortly before 11 a.m. ET.

Coinbase’s convertible notes have been volatile in active trading since reporting earnings the previous week.

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