Equity Market round-up: Question of the month . . . where have all the convertibles gone?

Despite reasonably supportive market conditions, a record level of M&A, and confident predictions from investment bankers, the volume of new convertibles issuance in Europe over the past four months has dropped to a trickle.

According to senior convertibles bankers the number of deals has fallen to its lowest level in 10 years. Although year-to-date volume looks good, most of it comes from just a few big deals, they say.

One reason, which is supportive of the view of convertibles as bear-market instruments, is that the reasonable level of current valuations makes straightforward equity funding a simpler, easier option.