| Matthias Mosler | ||||||
Just as equity-linked bankers are starting to get used to a high profile, it seems it may be in jeopardy. Last year, as convertible issuance shot up by more than 50%, their market suddenly became mainstream. From being a product that contributed between 10% and 15% of the business of the equity capital markets divisions of most banks, in 2001 it accounted for more than a third. But a quieter than expected start to 2002 is giving market participants the jitters.
They're right to be nervous. Since the beginning of the year, investors have had a very rough ride. January and February have been painful months, with equity valuations down and bond spreads widening on the back of a steady flood of negative news.
All of this means that they're demanding proper payment in return for the risks taken on.