Viewpoint - Convertibles: A Flexible Asset for Insurance Portfolios
April 02, 2019
Convertibles: A Flexible Asset for Insurance Portfolios
Rising market interest rates have piqued curiosity in convertible securities, but many insurers do not fully understand how convertibles work or what they can add to a portfolio. The fact that they can be converted into the issuer’s equity speaks to their value proposition: possible equity upside with a bond’s downside protection.