Is this article implying that they had a long position in cryptocoins? I thought they only held them on behalf of their customers, who were the ones taking the risks, while they reaped transaction fees. Or did they really lose money just because their trading volume fell?
Yields of 10% on bonds maturing in four years is high, but it doesn't imply an overwhelming level of risk.
Market price is 0.7/face value of 1/coupon of 3.375 (from the article), payments per year = 1 with 7 payments remaining (you could also do 6, depends on whether they've made a payment this year which I didn't bother looking up), recovery rate of 60% (assumption, the model is really sensitive to this input), and the 5 year treasury rate is around 2.97 percent which I used as the risk free rate.
10% or 20% is "concerning" from some points of view, but what I meant was that creditors still think Coinbase is more likely to be in business 5 years from now than to be bankrupt.
0: https://cointelegraph.com/news/two-more-lawsuits-for-coinbas...
They haven’t innovated at all and are getting their arse kicked by FTX and Binance.
