“You’re also seeing Robinhoodish-type companies do convertibles.” “There are typical reasons, which would be a company experiencing rapid or unexpected growth,” he said, or firms considering a merger or acquisition. Convertible issuance is done by every imaginable type of company,” King told MarketWatch, adding that since his start in the 1980s he’s pretty much seen it all. “The way to think of it,” said Columbia Threadneedle’s Dave King, of the now roughly $400 billion sector, is that it’s like “a Las Vegas wedding chapel.” Surging issuance also means it’s now possible to get a taste of the cryto world and a line on far more different kinds of companies through convertible bonds, after a blistering $143.7 billion pace came to market since the onset of the pandemic in March 2020, according to Dealogic.

The bonds also come without the downside risk of owning the stock until that happens. The appeal of convertibles, like meme stocks or buzzy companies yet to turn a profit, is the chance to make a haul if shares eventually skyrocket. “We have chosen to issue convertible notes as we believe doing so offers a low total cost of capital, operating flexibility and minimal dilution for shareholders,” Coinbase said in a May 19 blog post. Read: Bitcoin stages fresh selloff as China reiterates crypto crackdown plans The deal landed ahead of a gut-wrenching rout

Investors snapped up the bonds, which pay a modest 0.5% rate of interest and come due in June 2026, unless they convert to stock, are redeemed or repurchased.

A taste of joy torrent