Convertible bonds – An alternative for equity and bond investors alike

Stephanie Zwick, Head of Convertible Bonds at Fisch Asset Management in Zurich, expects to see inflows into the convertible bond asset class during the remainder of the year. “In the current market phase, convertibles make for an attractive alternative to both equities and bonds. Equity market levels are high and the economic outlook is starting to look bleaker, so equity investors are increasingly on the lookout for downside protection, while bond investors need investment opportunities capable of generating higher returns due to concerns about interest rates.”