Moving targets
For years, moving-strike convertible bonds have courted controversy in Japan due to their detrimental impact on share prices. But given the rebound in equity prices, could that change the perception of these 'toxic' instruments? By Kathleen Kearney
A growing economy, greater optimism for the future and a fresh wave of mergers & acquisitions are all prompting another round of fund-raising activity in corporate Japan. With regulators keeping a close watch on the issuance of private convertible bonds (PCBs), derivatives specialists have added new twists to these products to take advantage of the rising appetite for equity risk.
Over the past three years, a product that has courted controversy in Japan is the moving-strike convertible bond
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