Buzz and Banter
Convertible bonds are a subset of the corporate bond market. All the things Brian has mentioned as indicators he is watching for a possible turn down in the corporate bond market are happening right now in this part of the market. They may be happening for a peculiar reason, but they are happening to an extreme degree. There are only sellers in this convertible bonds, with dealers full of inventory and marking down bids whenever something trades. Market participants are holding their collective breath and i suspect that the damage is worse than what their returns actually show.
I believe this may be a precursor to the overall corporate bond market given the special role convertible bonds have played in the market over the last several quarters: they have been the vehicle of choice for companies in rolling and restructuring debt.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter