midwestgogl.blogg.se - A convertible bond would let the investor exchange it for

The possibility of deleveraging after the crisis.

The more volatile the environment, the more this is an advantage.

The possibility, in exchange for the conversion option, to lower the coupon amount and, hence financing costs.

During distressed markets, convertible bonds offer issuers a dual advantage: As a result, the weighting of technologies rose from 6% to 14%. Another wave consisting of “pandemic winners” has included “stay at home” issuers, such as Delivery Hero, HelloFresh and Zalando. These have included many tourism issuers such as Lufthansa, Amadeus and Booking (the online reservation service), Dufry (duty-free retailer) and Accor. Companies hit directly by the healthcare crisis, the so-called “pandemic losers” have opted for this means of financing, resulting in a wave of issuance. But they are also attractive from the sector point of view. With a record-setting primary market in 2020 and investor inflows still uncertain, convertible bond valuations are still highly attractive, with worthwhile entry points. WHAT IS THE PROFILE OF ISSUES THIS YEAR AND WHAT DO THEY HAVE GOING FOR THEM?

As a result, after taking on just one fourth of equity market declines, our CPR Convex ESG fund captured more than half of the subsequent rally. The maximum loss of the asset class in 2020 is -10% vs -35% for equities, and convertibles were almost completely back into positive territory as early as June.

As of 30 November, European convertibles were up by 6% on the year to date (as expressed in the Refinitive Europe Focus), compared with a 4% decline on the equity markets (EuroStoxx 50). WHAT ROLE DOES THE ASSET CLASS PLAY IN THE CURRENT MARKET ENVIRONMENT?Ĭonvertible bonds act as a shock-absorber during times of crisis, and at the moment, the environment is still uncertain. In choosing to access our website, you acknowledge that you are aware of these terms and conditions and that you consent to them. Such information is not exhaustive, is subject to change over time, and may be updated at any time by CPR AM without advance notice.Īccess to this website is subject to compliance with regulations in effect in the selected country and with the website’s legal notices. Information on products described on this website is provided solely as an indication and constitutes a general presentation of our products and services. No information on this website should be construed as an offer to buy or sell a financial instrument, nor as investment advice. The sole purpose of this website is to provide information on CPR AM, its management expertise or its products authorised for marketing in the selected country. Person” you are not allowed to access this website. Securities Act of 1933, which covers in particular any person residing in the United States of America and any entity or company organised or registered under US regulations. Persons” as defined by Regulation S of the Securities and Exchange Commission by virtue of the U.S. Information on this website is not intended for nationals or citizens of the United States of America or for “U.S. If you are a resident of a country mentioned on the home page, please long onto the website of the country in which you are a resident. You will access the portion of the CPR AM website of the country of the browser that you are using to access this website. You have logged onto this website as a retail (or non-professional) client. It is a société anonyme (joint-stock company) with registered offices at 91-93 boulevard Pasteur, 75015 Paris, France, and entered into the Paris registry of commerce and companies under number 399.392.141. Welcome to the website of CPR Asset Management (hereinafter: “CPR AM”).ĬPR Asset Management is a portfolio management company certified by the French Financial Markets Authority ( AMF) under number GP 01-056.