Balanced convertibles benefit from bumpy markets

Balanced convertible strategies are rewarding investors, as seen by market returns, improved deal structures and rising primary issuance. The Refinitiv Global Focus Convertible Bond index, for example, has outperformed other major indices. Convertibles are becoming attractive again for fund managers looking to boost returns while managing risk. The comeback of coupon income has improved returns and resilience for convertible investors. Additionally, the primary market has excelled this year, with $68bn issued in the first half of year; a strong second half and future is expected. Market volatility,...