The first quarter of 2022 was painful for financial markets and heartbreaking for those watching the tragic events unfolding in Ukraine. The bond market massacre, beginning last year, accelerated with 10-year U.S. Treasury yields jumping to 2.32% from a low of 0.51% in early August 2020.
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Celebrating 30th Year and Over $3 Billion
Wellesley Asset Management Surpasses $3 Billion in Regulatory Assets Under Management as They Celebrate Their 30th Year Anniversary.
Convertible Investor – Summer 2021
- INFLATION IS REARING ITS UGLY HEAD – IS YOUR FORTFOLIO READY?
- DOWNSIDE PROTECTION: A CASE STUDY
- THE RATIONAL INVESTOR?
- Q&A WITH THE PORTFOLIO MANAGERS
High Yield – High Risk, Low Return
A high yield bond investor earns positive returns in three ways — clipping a coupon or current yield, an increase in value of the bond as holders enjoy the fruits of improved credit worthiness of an investment, or a fall in the general level of market interest rates.
The Benefits of Synthetic Convertible Bonds
Convertible bond investors are often frustrated with limited investment choices or options regarding convertible securities especially related to sporadic or narrow convertible issuance, or that the universe of companies and sectors with outstanding convertibles is not larger or more diverse.
Convertibles & Rising Interest Rates
The trend of lower rates accelerated beginning November 8, 2018 when 10-year U.S. Treasury bond yields began a descent that saw their yield drop from 3.23% to a recent jaw-dropping all-time low of 0.40% on March 9, 2020.
Sweet Spot Investing with Convertibles
Convertible bonds are sometimes considered the “Swiss Army knife” of financial products because they can provide investors with principal protection (barring default), income, and equity-like returns.
Advantages of Synthetics
Unlike traditional convertible bonds, the credit exposure of a synthetic remains with the issuing company, typically a bank. The equity exposure, however, is tied to the underlying company’s stock.
Bull, Bear and Upside Down Markets
An informative historical review of bull and bear markets leading up to the present state of our global economy. Bull and bear stock markets have been around since the beginning of stock indices in 1896. Currently, we are in the longest…