Jasper van Ingen: Are convertible bonds worth a fresh look?

Convertible bonds are by no means new - in fact, their issuance dates back to the 1850s - yet the asset class is sometimes overlooked by investors and advisers alike. 2018 has seen the highest issuance since 2007, and, unsurprisingly, investor interest is increasing in tandem. Will convertible bonds become a mainstream asset class this time around? And is the now the time for advisers to consider them as a diversifier? In broad terms, a convertible bonds is a corporate bond that is issued at par, redeemed at par and pays a coupon. As an additional feature, it may be exchanged by the h...