Convertible securities: What does the speedy pace of issuance mean for investors?

New issues mean new opportunities

Time to read: 2 min

May was the busiest month for convertible security issuance in the US market in almost four years — 21 new deals were completed, generating nearly $9 billion in proceeds for issuing companies.1 While the recent torrent of new issues could put some pressure on valuations in the convertibles market, the Invesco Convertible Securities Team believes this pickup in issuance is a healthy development for the asset class overall, as it gives active managers such as ourselves the ability to pursue new investment opportunities.

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Three reasons to consider convertibles now

Equity volatility, the prospect of rising interest rates and an uptick in issuance may bode well for the asset class

Time to read: 3 min

After trailing US stocks in 2017,1 US convertible securities outperformed during the volatile first quarter of 2018. Given the prospect of further market volatility, the expectation for rising interest rates and a recent pickup in convertible issuance, the Invesco Convertible Securities team has a favorable outlook for this asset class in the near to medium term.

Convertibles may withstand equity volatility

A convertible security is a corporate bond that has the added feature of being converted into a fixed number of shares of common stock. Therefore, convertibles have the ability to

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