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“Convertibles can only benefit from the increased volatility and rising interest rates”
Viswas Raghavan, JPMorgan |
“The equity-linked market is looking a lot more favourable,” says Viswas Raghavan, head of debt and equity capital markets at JPMorgan. “Convertibles can only benefit from the increased volatility and rising interest rates. The market will also benefit from asset price corrections. When share prices go down, companies start asking themselves ‘Why should I sell my shares for lower than they were a few weeks ago when I can sell them at a premium through a convertible?’”
Others agree. “It is definitely true that low interest rates and low volatility make CBs less interesting for issuers,” says Eric Lépine, global head...
