Accessing finance through convertibles

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Nicolas Delrue, portfolio specialist and Jean-Edouard Reymond, head of convertible bonds at Union Bancaire Privée (UBP), explain why the case for convertible bonds has strengthened significantly in recent years as more companies turn to this under-used asset class for their financing needs.

Since September 2012, primary convertible bond markets worldwide have demonstrated strong dynamism. Year-to-date global issuance has totalled $55bn (as of September 30th 2013). This roughly corresponds to the issuance level recorded in 2012 over the entire year. This deepening and enrichment of convertible bond markets, both European and global, comes with benefits for the asset class such as better liquidity, wider opportunities, higher sector and country diversification. So can the asset class be considered as a strong alternative to both equities and bonds? The dual return profi...