AllNews - There are still pockets of unexpected discounted yield on convertibles !
This Friday, July 18, AllNews published an article written by Cyril BATKIN, Convertible Trader & Portfolio Manager at Ellipsis AM, offering insight into the positive impact of the renewed interest in arbitrage strategies on convertible bonds, which could help uncover discounted and unexpected pockets of yield.
"In a market where bond entry points are becoming increasingly rare, equity-covered convertible bonds still offer opportunities for discounted yield."
Extract:
"While risk premiums in the bond market have tightened significantly, investors are struggling to find truly attractive entry points. However, one technical strategy still allows investors to capture discounted bond yields: equity-backed convertible bonds."
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.