Flipped switch

The convertible bond market has flipped back to life. After several months of silence, companies are rushing to issue convertibles. Of the $3.3bn of issuance in the first quarter, the vast majority occurred in March – and nearly a third came in the final week of the month according to Dealogic. As long as balance sheets are stretched, stock volatility is high and investors think share prices have bottomed, this trend has room to run. One reason for the sudden thaw in the market is that time has ...