Who invests in convertible bonds?

 Long-Only Convertible Bond Investors

 

• Focused on the underlying fundamentals of the issuer, and the macro outlook for commodity prices

• Portfolios are based around the balanced return nature (i.e. upside participation with downside protection) of convertibles as an asset class

Convertible Bond Hedge Funds

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• Utilise equity hedging strategies to monetise the issuer's share price volatility

• Some convertible bond hedge funds may take a partial long -only view based on their overall view of equity upside on the issuer's shares

 

Crossover Investors
 

• Typically invest in debt or equity of an issuer; however, use convertibles to balance their return profile