English to Italian Bus/Financial Economics Obbligazioni convertibili

While current yield is not traditionally a good metric to use to look at convertibles, for comparison purposes to straight debt, it gives a clear indication of the meaningful change witnessed over the last 10 years. We can clearly observe a fact well known to investors that the income from corporate credit has declined quite markedly. The yield on convertibles in some case is now comparable to the yield on corporates, hence the opportunity cost of holding convertibles versus fixed income has eroded.

That said, convertibles hold a call option which can become more valuable in periods of rising volatility. Hence, if investors are comfortable with the potentially different risks of holding convertible debt versus fixed income, we feel that the cost is low and** the case strong to transition ** some holdings from fixed income to convertibles.