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.
Winter 2021 : Convertible Investor
“Why Wellesley’s Convertible Bond Strategy Now?”, “Wellesley Asset Management’s Investment Process: The Three Legs of the Stool”, “The Traditional 60/40 Portfolio is DEAD”, “Got the Need for Income in Retirement”.
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.
Strategic Asset Allocation Guide
Convertible bonds as an asset class are experiencing a resurgence in popularity as companies seek new sources of financing during COVID-19.
Chasing Dividends Instead of Buying Bonds
One of the biggest challenges facing retirees is trying to find the “right” amount of money to receive on a monthly basis.
Why Convertible Bonds
Convertibles are a unique asset class that is often overlooked by many investors. They can offer the best of both worlds, combining desirable features of both stocks and bonds.
The Convertible Investor – Spring 2020
An Informative Guide for Investors Who Seek Growth and Preservation of Wealth. The Markets and Convertible Bonds: A Plan to Stay the Course…