Equity-linked: Converts make a comeback

Convertibles have regained popularity in M&A because of the types of deals being done.

According to Martin Fisch, head of ECM structured solutions for Deutsche Bank in EMEA, the big theme of the convertibles market now is M&A activity. “You can access the market quite quickly as they can be put together in less than a week and placed into the market in a single day. It offers cheap funding, and with M&A on the rise, usage will only increase. Also M&A naturally makes a market more volatile, and that translates into better pricing for converts.

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