Global New Issues of Convertible Bonds to Top $80b in 2017: UBP
“Macroeconomic environment, coupled with the return of inflation and a re-steepening of rate curves, are once again piquing interest in convertible bonds among both issuers and investors,” Jean-Edouard Reymond, head of convertibles team at Union Bancaire Privee Asset Management, says in emailed note.
- European convertible bond issuance reached $29.1b in 2016 vs $25.6b in 2015
- Political uncertainty in Europe, questions over plans of U.S. administration increase volatility risk in equity markets and benefit convertibles
- Outlook for 2017 convertibles market is “favorable”
- Favors industrials, energy, consumer assets in Europe