05 NOV

2015

Absolute Performance , Research Papers , Resources

Getting the most out of convertible bonds

Executive Summary

Convertible bonds have formed an important part of many investors’ armoury for many years now, as they provide a number of important benefits. However, with benchmarked long-only convertibles funds all chasing a limited universe of bonds, is now the time to take a new approach to the asset class?

In this paper we explain why it is important not to stick too closely to a benchmark, and how it is possible to take advantage of the wide variety of opportunities currently available in the convertibles markets – not just through taking long-only positions.

Table of content

  • THE CLASSIC HYBRID SECURITY
  • AN INVESTOR FAVOURITE
  • THE STATE OF PLAY IN THE CONVERTIBLE BOND MARKET
  • THE DISTORTED CONVERTIBLES MARKET
  • HOW TO APPROACH CONVERTIBLE INVESTING IN THE CURRENT LANDSCAPE
  • A NEW APPROACH: THE CANDRIAM CONVERTIBLES OPPORTUNITIES STRATEGY
  • CONCLUSION: TIME FOR A FRESH APPROACH TO INVESTING IN CONVERTIBLE BONDS
  • ABOUT CANDRIAM 

Download the complete Position Paper