Hedge fund interest drives Japan convertible bond issuance

Convertibles are proving popular in Japan

The ability to hedge out the credit risk of a convertible bond via an asset swap combined with market volatility in Japan over the past 12 months has led to a significant uptick in hedge fund investment into convertible bonds, say market participants.

Issuance of convertible bonds in Japan stands at $4.5 billion for the year to October, compared with $3.5 billion for the whole of 2012, of which $1.9 billion was in a single convertible issued by Sony, according to data provider Dealogic. The

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: