Learn More about Lumida ETF
Powered by LumidaWealth.com
Lumida News
  • Home
  • EarningsNEW
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us
No Result
View All Result
Lumida News
  • Home
  • EarningsNEW
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us
No Result
View All Result
Lumida News
No Result
View All Result
  • Lumida Wealth
  • Lumida Ledger
  • LUMIDA ETF
  • About Us
Home News Crypto

US Convertible Bonds Hit $10 Billion in Weekly Deals, Echoing Pandemic-Era Boom

by Team Lumida
June 19, 2025
in Crypto
Reading Time: 4 mins read
A A
0
Bitcoin Mining Stocks Outperform BTC in Early 2025, Network Strength Grows

"Bitcoin statistic coin ANTANA" by antanacoins is licensed under CC BY-SA 2.0

Share on TelegramShare on TwitterShare on FacebookShare on LinkedinShare on Whatsapp

Key Takeaways:

Powered by lumidawealth.com

  • Nearly $10 billion was raised across 10 convertible bond deals last week, marking the busiest week since March 2021.
  • Companies like Rubrik, Cloudflare, GameStop, and Oddity Tech priced bonds with zero coupons and high conversion premiums, taking advantage of surging demand.
  • Hedge funds are driving demand through convertible arbitrage strategies, while investors seek new opportunities as older bonds mature.
  • The favorable terms, including call spread overlays and low costs, are reminiscent of the pandemic-era market, despite higher interest rates today.

What Happened?

The U.S. convertible bond market had its strongest week in over four years, with $10 billion raised across 10 deals. This surge, driven by strong investor demand, has pushed 2025’s issuance volume ahead of last year’s pace.

Notable deals included Rubrik’s $1.15 billion and Cloudflare’s $2 billion offerings, both priced with zero coupons and conversion premiums exceeding 40%. These deals also featured call spread overlays, a derivative structure that raises conversion thresholds to over 100% above current share prices.

Hedge funds have been a key driver of demand, employing convertible arbitrage strategies that profit from volatility by buying bonds and shorting the underlying stock. This strategy has gained traction in high-growth tech names with significant price swings.

The surge in issuance is also fueled by the maturity of low- or no-coupon bonds issued during the pandemic. About$65 billion worth of these bonds will come due by the end of 2026, prompting investors to seek new opportunities to reinvest capital.


Why It Matters?

The booming convertible bond market highlights a rare opportunity for companies to raise capital at favorable terms, even in a higher interest rate environment. The ability to issue zero-coupon bonds with high conversion premiums reflects strong investor appetite and a supply-demand imbalance, with too much capital chasing too few deals.

For investors, the market offers exposure to high-growth companies with built-in downside protection, making it an attractive option amid market volatility. However, concerns are emerging that investors may be overpaying for volatility, raising questions about the sustainability of current valuations.

The resurgence of convertible bonds also underscores the broader trend of companies leveraging innovative financing structures to navigate economic uncertainty and capitalize on investor demand.


What’s Next?

While the current pace of deals may slow due to geopolitical risks and the summer earnings blackout period, the market is expected to remain active as more Covid-era bonds mature. Bankers anticipate continued opportunistic issuance, particularly from high-growth tech companies seeking to lock in favorable terms.

Investors will closely monitor market dynamics, including volatility trends and the balance between supply and demand, to assess whether the current boom can be sustained. The convertible bond market’s performance will also serve as a barometer for broader investor sentiment in a volatile economic environment.

Source
Tags: Bitcoin
Previous Post

Vodafone Appoints Microsoft’s Pilar López as New CFO Amid Turnaround Efforts

Next Post

Fed Holds Rates Steady, Projects Two Cuts by Year-End Amid Tariff Uncertainty

Recommended For You

Gold, Bitcoin Surge on Global Debt Concerns

by Team Lumida
1 day ago
Bitcoin Could Drop to $50K Before a Potential Fed-Driven Rally

Key Takeaways Powered by lumidawealth.com Gold and Bitcoin hit fresh highs as investors rotate into “debasement” hedges amid rising fiscal concerns across major economies (U.S., Japan, Europe). The yen...

Read more

Bitcoin Climbs to $120K as Safe‑Haven & ETF Flows Drive Rally

by Team Lumida
4 days ago
Bitcoin Plunges to $64K Amid U.S. Tech Stock Turmoil

Key Takeaways Powered by lumidawealth.com Bitcoin rose to about $120,000, the highest since its recent record, extending a six‑day rally and gaining ~10% since last Friday. Week‑to‑date spot‑ETF inflows...

Read more

Robinhood CEO: Tokenization a “Freight Train” That Will “Eat” Finance

by Team Lumida
6 days ago
Robinhood CEO: Tokenization a “Freight Train” That Will “Eat” Finance

Key Takeaways Powered by lumidawealth.com Robinhood CEO Vlad Tenev says tokenization of real‑world assets will rewire finance, expanding the addressable market from low‑single‑digit trillions to potentially tens of trillions...

Read more

Visa Tests Pre-Funded Stablecoins for Cross-Border Payments

by Team Lumida
1 week ago
blue and white visa card on silver laptop computer

Key Takeaways Powered by lumidawealth.com Visa is piloting Circle’s USC (USD) and EURC (EUR) stablecoins within Visa Direct to let FIs/remittance providers fund global accounts in real time and...

Read more

QNB Adopts JPMorgan’s Blockchain Platform for USD Payments

by Team Lumida
1 week ago
Tax-Loss Harvesting Surge: JPMorgan’s $15 Billion Windfall

Key Takeaways Powered by lumidawealth.com QNB switched its Qatar-based USD corporate payments to JPMorgan’s Kinexys Digital Payments, enabling 24/7 processing with near‑instant settlement (as fast as ~2 minutes). Kinexys...

Read more

A $500B Tether Would Make Its Owners Ultra‑Wealthy

by Team Lumida
2 weeks ago
icon

Key Takeaways Powered by lumidawealth.com Tether is reportedly seeking $15–$20 billion for ~3% equity, implying an approximate $500 billion valuation if top‑end targets are met. At that valuation, chair...

Read more

Tether Seeks Up to $20B at ~$500B Valuation

by Team Lumida
2 weeks ago
a close up of a pile of crypt coins

Key Takeaways Powered by lumidawealth.com Tether is pursuing $15–$20B in a private raise for roughly a 3% stake, implying an ~ $500B valuation — on par with the largest...

Read more

Crypto Liquidations Wipe Out $1.5B

by Team Lumida
2 weeks ago

Key Takeaways Powered by lumidawealth.com $1.5 billion of leveraged positions were liquidated after a sharp, partly unexplained sell‑off that hit Ether hardest (down as much as ~9% intraday). Roughly...

Read more

Cryptocurrencies Sink as $1.5 Billion in Bullish Bets Wiped Out

by Team Lumida
2 weeks ago
Bitcoin Plunges to $64K Amid U.S. Tech Stock Turmoil

Key Takeaways Powered by lumidawealth.com Over $1.5 billion of leveraged long positions were liquidated in a sharp crypto selloff; more than 407,000 traders were liquidated in 24 hours. Ether...

Read more

White House Weighs New Candidates as CFTC Nomination Stalls

by Team Lumida
3 weeks ago
White House, Washington DC

Key Takeaways Powered by lumidawealth.com The White House is considering additional candidates to chair the Commodity Futures Trading Commission after the nomination of Brian Quintenz stalled. Potential picks include...

Read more
Next Post
Fed Signals Rate Cut: What It Means for Your Investments

Fed Holds Rates Steady, Projects Two Cuts by Year-End Amid Tariff Uncertainty

US Officials Prepare for Potential Strike on Iran as Israel-Iran Conflict Escalates

US Officials Prepare for Potential Strike on Iran as Israel-Iran Conflict Escalates

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related News

white and blue glass walled high rise building

Big Tech’s Affordable Housing Pledges in Silicon Valley Fall Short of Expectations

August 12, 2025
white paper with green line

Investors Pour $437 Billion Into ETFs in 2025 Amid Market Volatility

May 26, 2025
China’s Housing Market: Eased Policies Show Promise Amid Economic Struggles

Luxury Apartment Glut Signals Misaligned Real Estate Investment Strategy

January 10, 2025

Subscribe to Lumida Ledger

Browse by Category

  • Lifestyle
    • Family Office
    • Health and Longevity
    • Next Gen Wealth
    • Trust, Tax, and Estate
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Latest
    • Macro
    • Markets
    • Real Estate
  • Research
    • Trackers
  • Themes
    • Aging & Longevity
    • AI
    • Biotech
    • CRE
    • Cybersecurity
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
    • Software
Facebook Twitter Instagram Youtube TikTok LinkedIn
Lumida News

Premium insights to help you invest beyond the ordinary. Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser

CATEGORIES

  • Aging & Longevity
  • AI
  • Alt Assets
  • Biotech
  • CRE
  • Crypto
  • Cybersecurity
  • Digital Assets
  • Equities
  • Family Office
  • Health and Longevity
  • Latest
  • Legacy Brands
  • Lifestyle
  • Macro
  • Markets
  • News
  • Next Gen Wealth
  • Nuclear Renaissance
  • Private Credit
  • Real Estate
  • Software
  • Themes
  • Trackers
  • Trust, Tax, and Estate

BROWSE BY TAG

AI AI chips AI demand Amazon Apple Artificial Intelligence Banking Bitcoin China Commercial Real Estate CPI Crypto Donald Trump EARNINGS ELON MUSK ETF Ethereum Federal Reserve financial services generative AI Goldman Sachs Google India Inflation Interest Rates Investment Strategy Japan Jerome Powell JPMorgan Markets Meta Microsoft Nasdaq Nvidia OpenAI private equity S&P 500 SEC Semiconductor stock market Tech Stocks tesla Trump Wells Fargo Whale Watch

© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018

No Result
View All Result
  • Home
  • Earnings
  • News
    • Alt Assets
    • Crypto
    • Equities
    • Macro
    • Markets
    • Real Estate
  • Lifestyle
    • Family Office
    • Health and Longevity
  • Themes
    • Aging & Longevity
    • AI
    • CRE
    • Digital Assets
    • Legacy Brands
    • Nuclear Renaissance
    • Private Credit
  • About Us

© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018