IThis year and next, many companies will have to refinance debts from the Corona era – at higher interest rates and therefore significantly more expensive than back then. Convertible bonds, which can be redeemed by issuing shares, are an interesting option. Because stocks offer the opportunity for price gains, the coupons for convertible bonds are lower. They offer private investors another opportunity to diversify their portfolio.
“Convertible bonds are currently a very exciting asset class thanks to the high interest rates,” says Jonas Landgraf, portfolio manager at asset manager Salm-Salm & Partner, to the FAZ. The comparatively small asset manager specializes in sustainable investments in convertible bonds and manages 240 million euros here. “I think 2024 will be a good year for convertible bonds,” says Arnaud Brillois. In many sectors in which convertible bonds are usually issued, share prices have not yet recovered. “We continue to believe that convertible bonds will benefit from the interest rate cuts,” he adds. Brillois leads the Global Convertibles team at Lazard Asset Management, one of the largest in this space with $6.6 billion under management in convertibles alone.
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