The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Convertible cat and mouse game

Following a banner year for convertible bonds in 1999, bankers had hoped that the European corporate restructuring wave, capital gains tax changes in Germany, and benign economic conditions would spur the market to even greater heights in 2000. They have been disappointed by a light new issue calendar. However the market is hopeful of an upturn. Chris Cockerill reports

Until Hong Kong conglomerate Hutchison Whampoa burst onto the scene last month with the second-largest equity linked bond ever offered - a $3 billion issue exchangeable into the shares of Vodafone - bankers involved in the convertible debt markets had been especially idle throughout the holiday month of August. While executives in most sectors of the capital markets are usually grateful to slow down in the summer, after the traditionally hectic second quarter funding spree, convertible specialists were quite dispirited.

As one banker puts it: "August was a disaster. Issuers were afraid to put anything into the market because the investor base just wasn't there. The boss goes away and leaves junior in charge.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree