AllNews - Convertible bonds, an ideal tool in a highly uncertain environment
On Friday 11th of April, AllNews published an article written by Nicolas SCHRAMECK, Head of Convertibles & Credit at Ellipsis AM, with the theme of the resilience and versatility of convertible bonds in an uncertain market environment. The article highlights their ability to outperform traditional allocations while offering balanced exposure to risk.
"Convertible fuels have demonstrated exemplary performance since the beginning of 2025 on both global and European deposits."
Extract:
"As of April 8, convertible bonds posted a performance of -4.30%, compared to -12.94% for the MSCI World EUR Hedged, +0.71% for the Bloomberg Global Aggregate, and -1.90% for Global High Yield.
Thus, convertibles outperformed a traditional 60/40 allocation, which returned -7.48% over the same period.
From the end of 2024 to the end of February 2025, convertibles performed in line with the equity market, returning +2.1% versus +2.3% for the MSCI World.
Since the end of February, they have participated in the equity market’s decline at a reduced rate—only 40%—with a performance of -5.9% versus -15% for the MSCI World.
The outperformance is even more pronounced in Europe, where convertibles delivered +5.06%, compared to -1.33% for the Stoxx 600 and -0.27% for investment grade corporate bonds (-1.23% for the 60/40 allocation)."
Disclaimer: The information relating to the instruments or issuers mentioned in this article is for illustrative purposes only and does not constitute a buy or sell investment recommendation. At the time of publication of this article, the portfolios managed by Ellipsis AM may or may not be exposed to the issuers mentioned and the issuers may no longer be present in the portfolio at a later date. Future management decisions are not constrained by the statements and analyses reported and may even go in the opposite direction.