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OUR BLOG

Update: COVID-19’s Impact to the Convertible Market

by Jared Kramer | March 26, 2020 | Convertible & Call Spread, COVID-19

Highlight: The convertible market has continued to weaken since March 13.  By our calculations, expected new issue coupons are now 3% higher than in mid-February and 1.5% higher than on March 13. In a previous post, we examined the impact of the current volatile market conditions on ... >>>Read More

Measuring COVID-19 Credit Facilities Drawdowns

by Jared Kramer | March 24, 2020 | COVID-19

Updated on 3/31/2020 for additional data from algorithm refinement As social distancing and business closures have taken hold in the last several weeks in response to the developing Covid-19 pandemic, a number of companies are bracing for a downturn by improving their liquidity ... >>>Read More

Share Repurchase Strategies for Volatile Markets

by Bryan Goldstein | March 18, 2020 | ASR, Buyback, COVID-19, eOMR

Over the past three weeks, the VIX index (a measure of expected volatility of the US market over a 30-day forward looking period) has steadily increased from the mid teens to a maximum of 82.7% on 16-Mar-2020.  To put this in perspective, the VIX index peaked at 80.9% during the 2008 financial ... >>>Read More

Measuring COVID-19’s Impact to the Convertible Market

by Jared Kramer | March 17, 2020 | Convertible & Call Spread, COVID-19, Market Review

Over the past three weeks, prospective issuers have heard versions of the following banker simplification of the convertible market: “Convertible pricing is very attractive because rates are at historic lows and the benefit from the increased volatility offsets widening credit spreads.”  While ... >>>Read More

February Convertible Market Review

by Jared Kramer | March 4, 2020 | Convertible & Call Spread, Market Review

Total Issuance: Despite the sharp market sell-off, February was a very busy month in the convertible market.  A total of $5.1 billion priced over 11 deals – a higher dollar volume than every month of 2019 except for August and September.  Activity was in fact concentrated (4 deals for ... >>>Read More

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Archives

Recent Posts

  • Early Earnings Read: Share Repurchase Authorizations Resilient amid Macro Volatility
  • Strength Amid Choppiness: Q1 2025 Convertible Market Review
  • 2024 Year-End Convertible Market Review
  • Unscheduled Market Closure – Will ASRs Be Adjusted Fairly?
  • Trends in the Call Spread Market

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