On Friday, October 20th, the Swiss website AllNews published an article featuring the perspective of Nicolas SCHRAMECK, Co-Head of the Convertibles & Credit division and a member of the board at Ellipsis AM.
"Many issuers turn to convertible bonds to finance their rapid growth. Revisiting this promising, long-term theme makes sense."
Extract:
"Over the past two months, we have observed a significant underperformance of indices related to the decarbonization theme. The S&P Global Clean Energy Index and the Bloomberg Electric Vehicles Index have both experienced a decline of over 20% during this period, returning to pre-pandemic valuation levels."
"In this context, the risk appears to be fairly well rewarded, making it sensible to re-engage with this promising long-term theme. It would not be surprising to witness new issuances of convertible bonds in this sector, which benefits from the favorable environment for our asset class, combining high financing needs with strong growth."
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.