On Thursday 14 September, AllNews published an article reporting the views of Cyril BATKIN, Manager & Convertible Trader at Ellipsis AM, on the primary convertible market.
"The primary convertible market is shaping up in a new light. We are witnessing a revival of deposits, characterised by a more convex and diversified universe."
Extract:
"In 2023, investors seized the opportunity offered by rising rates to shift their portfolios into bond assets. This strategy proved particularly fruitful for corporate bondholders, thanks to tighter spreads resulting from limited supply and sustained demand."
"The technical terms of convertibles will improve, and primary issues will become attractive (see our previous article: Convertible bonds: an attractive alternative to a mixed bond and equity allocation) because investors now have the upper hand."
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.