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Convertibles in the Press

  • Pimco Total Return May Buy Equity-Linked Securities - Bloomberg 12/16/10

    Bill Gross's Pimco Total Return Fund, the world's largest mutual fund, is expanding its policy to allow investments in equity-linked securities for the first time since 2003. Pimco Total Return may put as much as 10 percent of assets in securities including preferred stock and convertible bonds as early as the second quarter of next year

  • Demand for Convertibles Set to Rebound - Financial Times 12/19/10

     

    The spotlight is set to shine on convertible bonds in 2011 as issuance is forecast to rebound and market developments boost demand for the hybrid securities.

    Convertibles – bonds that can be exchanged into stock at a set price or time – are becoming more attractive to investors like Pimco, the world’s largest bond fund, because of rising equity prices.

    Meanwhile, the prospect of rising interest rates could force companies to seek alternatives to straight debt issuance.

  • Convertible Debt Beats Bonds by Most in Decade

    Investors are seeking to profit from the rally in equities by buying convertible bonds, which are deemed safer than stocks should the economy slip back into recession.

    “Either bonds are a bubble or stocks are cheap,” said Edward Silverstein, a senior managing director who helps manage $2.7 billion of convertible bonds at MacKay Shields LLC in New York. “You basically have an investor that’s scared.”

    Original Article
  • Convertible bonds deliver top hedge fund gains

    Convertible bonds have produced some of the most remarkable hedge fund gains this year after savage deleveraging in the asset class in 2008, according to research house reports on recent industry returns.

    Original Article
  • The Stock-Bond Chimera - Forbes 05/06/2009

    "If you seek the safety and yield of fixed income but don't want to miss a rebound in equities, convertibles may be the answer"

    Original Article
  • Convertible Bonds Bounce Back - Forbes 04/27/2009

    "The market for half-stock, half-bond hybrids known as convertible bonds has sprung to life.  Derivatives and anything slightly complex are supposed to be out of favor right now, but one preferred security of hedge-fund managers has recently staged a comeback. Convertible bonds, after having the market for them killed last year by the temporary ban on short-selling financial companies, have surged 11% this year."

    Original Article
  • Convertible Sales Show Bernanke Opens Cheap Credit – Bloomberg 04/21/2009

    “For the first time in six months the market for convertible bonds is open for business as companies whose credit was shut off turn to the securities to refinance debt.”

    Original Article
  • ArcelorMittal Sells Largest ’09 Corporate Convertible – Bloomberg 03 03/24/2009

    “ArcelorMittal, the world’s biggest steelmaker, is issuing 1.1 billion euros ($1.5 billion) of convertible bonds, in the largest sale of the notes by a non- financial company this year.”

    Original Article