Convertible bonds must play a dedicated role in portfolios

Arnaud Brillois  |  Lazard Asset Management  |  30 September 2020  |  0.50 CE

Heightened equity market risk and negative yielding fixed income securities leaves only hard asset allocation decisions. For investors needing more from their fixed income allocation, global convertible bonds can offer upside that is simply not available in developed sovereign or credit markets. Australian investors have historically underutilised this asset class that can optimise portfolio efficiency and bring powerful diversification benefits. As an instrument, global convertible bonds are balanced with both equity and bond characteristics, offer ...

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