Market weekly – Convertible bonds: multi-functional and flexible capital
Convertible bonds are hybrid instruments combining bond and equity characteristics. As a result, they offer some equity upside, but with bond-like protection on the downside. If we are at the start of a cycle of rising interest rates, the option investors in these nominal assets (bonds) hold to convert to real assets (equities) could prove invaluable. Hosted by Ausha. See ausha.co/privacy-policy for more information.