M&G managers push convertibles for equity upside

M&G's global convertibles duo are pushing convertible bonds as a method for obtaining the upside of ...

M&G's global convertibles duo are pushing convertible bonds as a method for obtaining the upside of equities with the downside protection of bonds. Portfolio manager Leonard Vinville and analyst David Romani believe convertibles can act as a safety net, shielding investors from falls in share prices. Romani said: "You get the principal when the bond matures and you have the same rights as a bond holder, but you also have rights as a future shareholder." He argued the moves in the convertibles index during the credit crunch have been much less pronounced than the main market. Vinvill...