Should you buy convertible bonds?

There has been a big increase recently in the amount of convertible bonds being issued. But should you invest in them - and what is their resurgence telling us about the outlook for the stockmarket? Phil Oakley investigates.

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?

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Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.