A convertible bond is a fixed-rate instrument that can convert into shares at a specific share price, which is preset by the issuing company at a premium over the current share price.
Many people think there’s no bubble in the bond market because investors aren’t excited enough. But boring markets can crash just as heavily as exciting ones, says John Stepek.
Macron’s win is a victory for the status quo, says Hugh Hendry, which mans European sovereign bon yields will start to rise.
The world’s continuing quantitative easing programmes have contributed to the lack of volatility in the US Treasury bond market, which is at a three-year low.
Serial defaulter Argentina has issued a 100-year bond. Investors beware, says John Stepek. It’s the sort of thing you can only get away with at the top of the market.
Investors have piled into Argentina’s latest dodgy debt issuance. But who would buy this stuff, asks John Stepek.
With inflation creeping up, investors should be on their guard, says Merryn Somerset Webb.
Gilt yields have been steady for a while now, says Alice Gråhns. But that can’t last much longer.
That bonds are so overvalued spells trouble for investors, says John Stepek. But thanks to the passive investing hype, that trouble could be about to turn into a disaster.
There are clouds gathering over the bond market, says John Stepek. For such a “risk-free” investment, there could be a painful landing.
It’s staggering how many people in Britain own premium bonds, says Ruth Jackson. But are there better bets elsewhere?