y 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 when they were issued — mean many of these notes will never switch into equities. More From Bloomberg Tech Stocks Push S&P 500 Further Into Bull Market A Mark-to-Market Maelstrom Is Slamming a $10 Trillion Market Even Worse Than Before Air Baltic Corp AS And Ryanair Holdings Plc Aircraft at Riga International Airport Air Baltic Becomes Latest Junk Issuer to Shelve Bond Sale Hamza Lemssouguer Hamza Lemssouguer’s Next Trade Is Fast Cash for Stressed Credits Bond Vet Bond Vet Raises $50 Million for Growth from Warburg, Talisman Top Reads FRANCE-MEDIA-PARLIAMENT Debt and Scandal Throw Billionaire Drahi’s Empire Into Turmoil by Benoit Berthelot and Irene Garcia Perez Country Garden Developments as Developer Dodges Default With Overdue Payments China’s Property Crisis Is Upending Tens of Thousands of Lives by Bloomberg News These Are the Top 25 UK Startups to Watch This Year by Isabella Ward, Helen Chandler-Wilde and Amy Thomson Oxy And 1PointFive Direct Air Capture Plant Groundbreaking Ceremony An Oil Giant Quietly Ditched the World’s Biggest Carbon Capture Plant by Natasha White, Akshat Rathi and Kevin Crowley Terms of ServiceDo Not Sell or Share My Personal InformationTrademarksPrivacy Policy©2023 Bloomberg L.P. All Rights Reserved.

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 when they were issued — mean many of these notes will never switch into equities.