Shifting sands in the CB market
New issuance in the US and European convertible bond markets has been tied in knots so far this year. But that doesn’t mean CB profit opportunities have disappeared. Rather, the field of play has shifted. By Keith Brody
After the deluge, cometh the drought. The convertible bond (CB) markets in the US and Europe have seen new issuance drop precipitously in 2002, and with no immediate rebound in fortunes visible on the horizon, issuers and, in particular, investors are having to find creative ways to profit from those bonds already in play.
The fall-off in new issuance is severe. According to figures from Morgan Stanley’s ConvertBond.com, the CB market tracking website, 97 new bonds had been issued in 2002 in the
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