Sea, BlackLine convertibles continue to gain; Coinbase notes lifted; Avalara active

By Abigail W. Adams

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

The Dow Jones industrial average closed the day up 382 points, or 1.09%, the S&P 500 index closed the day up 0.75%, and the Nasdaq Composite closed the day up 0.5%.

While the Russell 2000 index was in positive territory for the majority of Friday’s session, late-day selling pushed it into the red with the index closing the day down 0.37%.

There was $82 million in reported volume about one hour into the session and $488 million in reported volume about one hour before the market close.

While quiet early in the session, Sea Ltd.’s 0.25% convertible notes due 2026 again claimed the top spot on the volume charts with the notes again hitting a new outright high as stock continued to gain.

BlackLine Inc.’s 0% convertible notes due 2026 also continued their upward momentum in active trading.

Avalara Inc.’s 0.25% convertible notes due 2026 were also active with the notes rising alongside stock.

While the notes saw light volume, Coinbase Global Inc.’s 0.5% convertible notes due 2026 continued to gain on an outright basis as stock skyrocketed as the crypto bulls returned.

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

Sea’s new heights

Sea’s 0.25% convertible notes due 2026 again topped the volume charts on Friday with the notes again hitting a new outright high.

The 0.25% notes were up another 2.5 points outright as the company’s equity gained about 3% during Friday’s session.

The notes were changing hands at 107.5 versus a stock price of $355.28 in the late afternoon, according to a market source.

There was $23 million in reported volume.

Sea’s American Depositary Shares traded to a low of $247.11 and a high of $257.48 before closing the day at $354.50, an increase of 2.64%.

The notes have gained more than 5 points outright as the company’s ADRs shot up more than 11% over the past week.

Avalara better

Avalara’s 0.25% convertible notes due 2026 were active on Friday with the notes rising alongside stock.

The 0.25% notes were changing hands at 103.5 versus a stock price of $173.07 in the late afternoon.

There was $16 million in reported volume.

Avalara’s stock traded to a high of $175.43 and a low of $172.11 before closing the day at $172.85, an increase of 0.44%.

BlackLine gains again

BlackLine’s 0% convertible notes due 2026 remained active with the notes continuing to gain outright.

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

They were seen changing hands at 101.125 versus a stock price of $123.70 in the late afternoon.

There was about $10.5 million in reported volume.

BlackLine’s stock traded to a low of $123.07 and a high of $125.96 before closing the day at $123.35, a decrease of 0.46%.

Coinbase improves

While the notes saw light volume, Coinbase’s 0.5% convertible notes due 2026 were up on an outright basis with stock skyrocketing over the past week.

The 0.5% convertible notes were up another 3 points outright with stock up more than 7% on Friday.

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

They climbed to 109.5 in the late afternoon.

There was about $5 million in reported volume.

Coinbase’s stock traded to a low of $266.53 and a high of $281.72 before closing the day at $280.61, an increase of 7.93%.

Coinbase’s stock has gained more than 11% over the past week as bullish momentum has returned to the crypto space.

Bitcoin hit its highest level in six months on Friday. It was trading at $61,326.32, an increase of 6.15%, at the close of equity markets.

Bitcoin also saw a spike in bullish options calls amid the expected imminent Securities and Exchange Commission approval for a futures-based cryptocurrency ETF.

JPMorgan on the tape

While activity in the issue declined as the session progressed, JPMorgan’s 0.25% cash-settled equity-linked notes due 2023 tied to Voya saw some early morning activity on Friday.

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 traded to a low of $68.44 and a high of $69.14 before closing the day at $68.66, an increase of 0.93%.

The notes were most likely trading in response to JPMorgan’s blowout 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.

Mentioned in this article:

Avalara Inc. NYSE: AVLR

BlackLine Inc. Nasdaq: BL

Coinbase Global Inc. Nasdaq: COIN

Sea Ltd. NYSE: SE

Voya Financial, Inc. NYSE: VOYA

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