- Higher Interest Rates May Provide Opportunity
- The Benefits of Using Convertible Bonds in Rising Rate Environments
- Heed the Inverted Yield Curve
- Synthetic Convertibles go Mainstream
Forbes Top Next-Gen
Convertible arbitrage has evolved and is attractive currently because of the return/risk dynamics that it provides during volatile equity markets, in an environment of lower interest rates, vastly improved credits due to abundant liquidity, and lofty equity valuations.
This year marks Wellesley Asset Management’s 30th anniversary! We are extremely proud of our history, the tremendous effort of employees and the trust and confidence our clients have placed in us over the years to grow and protect their assets.
Convertible bond investors are often frustrated with limited investment choices or options regarding convertible securities especially related to sporadic or narrow convertible issuance, or that the universe of companies and sectors with outstanding convertibles is not larger or more diverse.
The trend of lower rates accelerated beginning November 8, 2018 when 10-year U.S. Treasury bond yields began a descent that saw their yield drop from 3.23% to a recent jaw-dropping all-time low of 0.40% on March 9, 2020.
Convertible bonds are sometimes considered the “Swiss Army knife” of financial products because they can provide investors with principal protection (barring default), income, and equity-like returns.
Unlike traditional convertible bonds, the credit exposure of a synthetic remains with the issuing company, typically a bank. The equity exposure, however, is tied to the underlying company’s stock.
One of the biggest challenges facing retirees is trying to find the “right” amount of money to receive on a
Wellesley Asset Management, Inc. is an independent, registered investment advisory firm dedicated to help you navigate market volatility. Utilizing convertible bonds, Wellesley offers many different types of investors a non-traditional approach to achieving return while seeking to mitigate risk.
As President and Chief Investment Officer of Wellesley Asset Management, Inc. and a Portfolio Manager of the firm’s mutual funds, separately managed accounts and private fund.
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CEO and founder of Wellesley Asset Management in 1991, Greg draws on over thirty-five years of investment and financial experience.
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