An obscure investment opportunity in Asia

Asian convertible bonds are an obscure niche investment, but they can offer much higher yields than conventional bonds.

During a panic, some of the best investment opportunities come out of smaller markets where liquidity dries up. Take Asian convertible bonds, which have been severely mispriced in the last few weeks.

Convertibles are bonds that have the option to convert into a fixed number of shares in the company. As long as the share price is high enough to make conversion worthwhile, this conversion option has value. So a convertible shouldn't trade at a lower price than a comparable non-convertible, and will usually trade at slightly more.

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Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.