Coinbase Convertible Bonds Hit Two-Year High Amid Crypto Market Rally

Key Highlights:
📍 Coinbase convertible bond reaches two-year high at 102.625 cents, entering negative yield.
📍 Recovery from November 2022 low of 52.75 cents, amid broader crypto rally.
📍 The bond, issued during the pandemic, has a 0.5% coupon.
📍 Rally aligns with increased interest in convertible bonds, especially in the tech and AI sectors.
📍 MicroStrategy recently sold a $700 million convertible bond to invest in Bitcoin.
📍 Other pandemic-era bonds from companies like Peloton, $Snap Inc(SNAP.US)$ , and Ubisoft still below par, while DigitalOcean's bonds hit their highest since January 2022.

👉 Context/Background:
📍 Convertible bonds, particularly from tech and crypto firms, faced challenges with the rising global interest rates but are now seeing a resurgence alongside the crypto market.

👉 Why This Matters:
📍 The rebound in Coinbase's bond price reflects renewed investor confidence in the crypto market and the appeal of convertible bonds amidst a tech and crypto rally.