Booking convertibles in focus; Opendoor gains outright; MicroStrategy, Coinbase improve

By Abigail W. Adams

Portland, Me., Aug. 20 – It was a quiet end to a volatile week in the convertibles secondary space as equity benchmarks closed the day with gains, paring their losses on the week.

The Dow Jones industrial average closed the day up 226 points, or 0.65%, the S&P 500 index closed up 0.81%, the Nasdaq Composite closed the day up 1.19% and the Russell 2000 index finished up 1.61%.

There was about $85 million in reported volume a little more than one hour into the session and $400 million on the tape about one hour before the market close.

Booking Holdings Inc.’s convertible notes continued to dominate the tape as one of the travel technology company’s tranches approaches its maturity.

Opendoor Technologies Inc.’s 0.25% convertible notes due 2026 improved on an outright basis although the notes contracted on the move up.

MicroStrategy Inc.’s 0% convertible bonds due 2027 gained on an outright basis with stock on the rise alongside the price of Bitcoin.

While volume in the name was light, Coinbase Global Inc.’s 0.5% convertible notes due 2026 were also improved on an outright basis.

Booking in focus

Booking Holdings’ convertible notes dominated the tape on an otherwise quiet day in the secondary space.

The notes continued to switch hands as the 0.9% convertible notes due Sept. 15, 2021 approach their maturity.

The notes, which are in their averaging period, traded around parity.

The 0.9% notes were changing hands at 101.875 versus a stock price of $2,070.33 early in the session, according to a market source.

They continued to trade just shy of 102 heading into the market close.

The 0.75% convertible notes due 2025 were changing hands at 136.625 early in the session.

They continued to trade on a 137-handle heading into the market close.

Booking’s stock wavered between gains and losses early Friday before closing the day in the red.

Stock traded to a high of $2,083 and a low of $2,058.48 before closing the day at $2,074.74, a decrease of 0.054%.

Booking’s tranches have been active throughout the week with holders selling the short-dated notes for the longer-dated notes.

Opendoor gains outright

Opendoor’s 0.25% convertible notes due 2026 were active with the notes improving on an outright basis but contracting dollar-neutral on the move up.

The 0.25% convertible notes launched the day at par.

However, they traded up to 101 by the late afternoon as stock continued to rise.

While the notes gained on an outright basis, they were contracted dollar-neutral.

The notes came in 0.25 point to 0.375 point dollar-neutral on the move up, a source said.

Opendoor’s stock traded to a high of $15.41 and a low of $14.73 before closing the day at $15.41, an increase of 3.28%.

The crypto trade

MicroStrategy’s 0% convertible notes due 2027 were active on Friday as stock popped alongside the price of Bitcoin.

The 0% notes, which have long been in busted territory, gained about 3 points outright with stock up more than 5%.

The 0% notes were changing hands at 80 in the late afternoon, a source said.

MicroStrategy’s stock traded to a high of $727.99 and a low of $683.01 before closing the day at $716.56, an increase of 5.96%.

Stock was posting gains alongside Bitcoin, which was changing hands at $48,628.48, an increase of 4.4%, shortly after the close of equity markets.

Bitcoin was rallying following several positive news stories. Coinbase Global announced it was adding $500 million in digital currencies to its balance sheets.

Mortgage lender UWM Holdings also recently announced that it would begin accepting payment in Bitcoin.

While volume in the name was light, Coinbase’s 0.5% convertible notes due 2026 were also improved on an outright basis as stock gained.

The 0.5% convertible notes, which priced at 99, traded up 1.5 points outright to 105.5.

Coinbase’s stock traded to a high of $260.62 and a low of $251.42 before closing the day at $257.32, an increase of 3.66%.

In addition to the rally in Bitcoin, Coinbase’s stock was posting gains on news it was teaming up with MUFG to start a cryptocurrency exchange in Japan.

Mentioned in this article:

Booking Holdings Inc. Nasdaq: BKNG

Coinbase Global Inc. Nasdaq: COIN

MicroStrategy Inc. Nasdaq: MSTR

Opendoor Technologies Inc. Nasdaq: OPEN

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