"This Friday, November 17th, AllNews published an article recounting the perspective of Cyril BATKIN, Manager & Convertibles Trader at Ellipsis AM, on the valuation premiums offered by M&A."
"Some specific features of convertibles, such as the put at par in the case of takeovers, appreciate and enable outperformance compared to traditional bonds."
Extract:
"Significant discounts have emerged between convertible bonds and traditional bond issues. However, some specific features of convertibles, such as the put at par in the case of takeovers, appreciate and enable outperformance compared to traditional bonds. Studying the opportunity presented by M&A in disruptive convertible bonds seems advisable."
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.