Top-rated US companies turn to convertible bonds
Investment-grade borrowers have sold $12 bln of convertible bonds this year, more than 30% of total issuance. Convertible bonds can be swapped for equity if a company’s shares rise to a specific price. They allow companies to borrow at 2-3 percentage points cheaper rate than a traditional bond. The market used to be dominated by junk-rated companies.

26 September 2023

Financial Times