As a market leader in convertible bonds1, we explain the basics of convertible bond structures and argue that this profile is ideally suited for navigating the new fixed income paradigm of low yields and elevated interest-rate risk, and uncertainty around equity and bond valuations, the business cycle and political risk. Along with healthy levels of new issuance and the attractive pricing of equity optionality, we believe this makes it an interesting time to think about what convertibles can offer.
1 Based on AUM size, as at 31 May 2017.
Nathalia Barazal, Head of Convertible bonds
Maxime Perrin, Client Portfolio manager, Convertible bonds