The rebound of the convertible bond market since the end of the first quarter is expected to continue for the next couple of years, as a new breed of investors pile into the asset-class to capitalise on the attractive yields and low volatility of equity-linked securities.

A report published today by Edmond de Rothschild Asset Management said that while convertible bonds "bore the full brunt" of the financial crisis, largely as a result of the fallout among the once dominant arbitrage hedge fund buyers, the investor base has now stabilised and is more balanced, which should help sustain the market's strong performance.