Investors Find Value in Seemingly Valueless Convertible Bonds Convertibles from 2020-2021 trade more like debt, Calamos says Opportunities lie in refinancing or mergers and acquisitions Have a confidential tip for our reporters? Get in Touch Before it’s here, it’s on the Bloomberg Terminal LEARN MORE By Amy Or October 23, 2023 at 8:18 PM GMT+5:30 Convertible bonds of the 2020-2021 vintage have aged surprisingly well. A crop of so-called out-of-the-money convertibles have attributes that should lead investors to shun them, including an underlying stock that has fallen far below the conversion price and a zero- or near-zero coupon while the Fed funds rate is above 5%. High conversion prices — even to bull-market standards w

 

Investors Find Value in Seemingly Valueless Convertible Bonds

• Convertibles from 2020-2021 trade more like debt, Calamos says
• Opportunities lie in refinancing or mergers and acquisitions

Have a confidential tip for our reporters? Get in Touch

Before it’s here, it’s on the Bloomberg Terminal

 LEARN MORE

By Amy Or

October 23, 2023 at 8:18 PM GMT+5:30

Convertible bonds of the 2020-2021 vintage have aged surprisingly well.

A crop of so-called out-of-the-money convertibles have attributes that should lead investors to shun them, including an underlying stock that has fallen far below the conversion price and a zero- or near-zero coupon while the Fed funds rate is above 5%. High conversion prices — even to bull-market standards w