Convertibles grabbed centre stage last month as European and US
issuers took advantage of strong investor demand and the attractive
combination of rallying share prices and tightening credit
spreads.
Amid the surge of issuance the high premium structure made its
first appearance in Europe with Dutch semiconductor equipment
manufacturer ASM Lithography's seven-year e330 million offering,
managed and underwritten by Morgan Stanley.
Ever higher premiums have been a trend in
the US for some time but to the dismay of many European
investors the trend now seems to have started to take root in
Europe. At 75% the premium on ASML's is nothing exceptional by
US standards where premiums of over 100% have started to
appear. In April, Wells...
