Convertibles

Straddling the world of equities and bonds, convertibles offer a unique risk/reward profile that, combined with our credit skills, can offer attractive risk adjusted returns.

Entry Point selection requires professional management with a view towards credit.

Given their complex nature and dual attributes of both fixed income and equities, convertibles are often under-appreciated by many investors. We believe this has led to an inefficient market and the potential for strong returns with an attractive risk profile. With a current income component and the potential for equity upside through an embedded option, convertibles can lower volatility and enhance returns of balanced portfolios. SHENKMAN CAPITAL has an established track record of managing convertibles securities with a focus on the credit fundamentals of the issuer.

Why Convertible Bonds?

  • Non-investment grade issuers dominate the convertible marketplace.
  • Dedicated convertible buyers include crossover equity and fixed income funds.
  • Shenkman’s entry point strategy leverages our disciplined credit research process, allowing us to shift the risk/reward profile to meet our clients’ objectives.

Spectrum of Convertible Buyers

Retail investors are under-represented in a market dominated by institutions.

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