In a recent development, Coinbase issued a junk bond, and the market seemed to be hungry for the instrument. Currently, the US crypto exchange is recording more demands for these bonds every day. With these demands, the crypto exchange’s sales have grown from $1.5B to $2B. Bonds are fixed investments that yield interest monthly. But when we talk of junk bonds, investors make higher returns but face higher risks as well. Companies usually issue junk bonds to raise capital very fast for a major project. Corporate Bond Orders Keep Rising The orders have continued to troop in for the Coinbase junk bond. One of our sources reveals that the orders amounting to $7 billion are competing for 7 and ten-year bonds, with interests of 3.375% & 3.625% each. From our sources, we also learned that some claims have risen that the interest rates were lower than what Coinbase offered in the first quotes. Related Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course This increasing demand proves that the exchange didn’t know the extent to which the public regarded its creditworthiness. If they offered higher rates in the quotes, it meant that Coinbase was unsure that many people would invest in the bonds. So, the high demand showed them their worth, and the company reduced the rates. Moreover, an analyst with Bloomberg stated that this high demand shows that debt investors have endorsed the exchange ...
