“Long term returns of convertibles have been similar to those of equities. It’s a nice asset class to consider as a way to be very efficient from a capital perspective.”
Those were the words of David Hulme, Managing Director and Portfolio Manager at Advent Capital, during the panel “Managing returns and constraints: exploring the trade-offs between yield, capital efficiency, regulation, and liquidity”, at the Insurance Investor Live | North America event, which also featured Diane Young, Chief Investment Officer at Gore Mutual Insurance and a representative from TIAA.
Getting the most return on investment was a major theme at the event, and many talked about piling into the convertible bond space as an effective way to do so.
However, they also highlighted the complexities of the market. Especially when understanding the heavy regulatory constraints around convertibles in some jurisdictions.
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