Driving in reverse

gear-stick-reverse
Reverse convertibles are seeing a revival of interest

Most of the recent problems for buyers of reverse convertibles started at the end of 2007, at a time when the market was regularly absorbing 500 launches every month. As global equity markets collapsed, the number of reverse convertible investors receiving shares upon redemption diverged dramatically from normal market conditions. “Where we had seen a typical distribution of 80:20 between those investors receiving principal at redemption versus stock, during the worst of the turmoil, that ratio

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: