Over the last few years investors have been showing increased interest in convertible bonds, attract...
Over the last few years investors have been showing increased interest in convertible bonds, attracted by the potential capital gains and defensive nature of the asset class. In 2007 new issuance of convertibles - corporate bonds that can be converted into a predetermined number of shares in the issuing company at a set price during its lifetime, usually five years - hit record levels, representing some $185bn (£94.3bn), as the asset class became increasingly attractive versus bonds and equities. Recession fears dominated the market during the first weeks of the year, something we believe...
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