In the last year there has been a big increase in the amount of convertible bonds being issued by companies across the world. New funds are being set up to invest in them. But should you invest in them right now and what is their resurgence telling us about the outlook for the stockmarket?
What are convertible bonds?
In many ways, convertibles are just like conventional bonds. They pay a fixed amount of interest every year with the promise of returning your original investment at the end of the bond’s life. The big difference is that they also offer [...]
Want to read this article now?
Already a MoneyWeek subscriber? Please log in below.
Not a subscriber? Sign-up now for a 3 week FREE trial to get instant access.