Tech Bear Market’s Latest Casualty Is Pandemic-Era Convertible Debt
- Zero-coupon convertible bonds hit by stock plunge, rate rises
- Low share prices leave tech firms with debt burden problem
A Peloton showroom in Dedham, Massachusetts.
Photographer: Adam Glanzman/BloombergThis article is for subscribers only.
The equity-linked debt of some of the pandemic’s darlings has plunged to record lows and is now considered distressed.
The convertible bonds of Peloton Interactive Inc., Ocado Group Plc, Just Eat Takeaway.com NV are trading between 45 cents to 75 cents on the dollar or euro -- levels that are considered distressed territory by debt investors.