Girish Kumarguru

Asian convertible bonds provide a compelling case given the superior risk adjusted returns.

The market has grown by a significant ~60% over the last one year. Benchmark sized issuances by high credit quality issuers together with renewed interest in emerging markets, particularly, Asia has supported growth of this market. There are many ways to implement Asian convertible strategy – including as a long only strategy, or as an absolute return strategy. Given the hybrid nature of the product, convertible bonds provide a variety of opportunities to monetize the inexpensive option embedded in the CB, to generate superior returns.

Discussion on this topic include

1) Growth in Asian convertible bond market

2) How Asian convertible bonds can fit within a traditional fixed income portfolio

3) How to extract the value of the inexpensive equity option embedded within the convertible bond

4) Alpha strategies using Asian convertible bonds