Convertible bonds: opportunity knocks
Looking past negative headlines regarding tariffs and trade wars, the world is currently seeing healthy albeit slower economic growth and upward pressure on interest rates due to the phasing out of monetary stimulus. Such an environment presents a buying opportunity for Convertible Bonds (CBs). CBs’ equity-like characteristics mean they benefit from economic growth while they are only modestly impacted by rising rates because of their low effective duration, which averages 1.8 years across the asset class.
In case you missed it (07 December 2018)
Eastspring officially opens China WFOE; UBS secures majority stake in China; Ping An launches two more ETFs in Hong Kong; HK regulator fines Soros family office; SFC modifies derivative investments calculation in funds; Singapore launches cybersecurity grant; and more…