Cheap issuance drove the global convertibles market to outperform a comparable portfolio of equity and debt by 5.4% over the 18 months ending December 2000, according to a report published this week.
The report, from US middle market investment bank Jefferies International, attributed the strong performance of convertibles to the fact that companies are prepared to sell equity-linked paper at generous prices. The report said: "The source of all cheapness has to be the issuers and their willingness to issue convertible bonds on cheap terms."
