Convertible Bonds : The High Return Asset Class That Vanguard Abandoned

How convertible bonds work, why they gained 50% in 2020 and outperformed stocks over the past five years. Why Vanguard shut down their convertible bond mutual funds.Topics discussed include:How big is the convertible bond marketWhy companies issue convertible bondsHow convertible bonds work and how to analyze themWhy convertible bonds have performed so wellWhat is a reasonable expected return for convertible bonds and what are the risksWhat are ways to invest in convertible bondsThanks to Netsuite for sponsoring the episode. Take the Money For the Rest of Us listener survey.Show NotesA Plunge and a Recovery Drives a Top-Performing Year in Convertibles by Andrew Bary—Barron'sConvertible Bond Indices: An Overview by SPDR EMEA ETF Strategy Team—State Street Global AdvisorsCONVERTIBLE SECURITIES: Structures, Valuation, Market Environment, and Asset Allocation by John P. Calamos, Sr with contributions from Eli Pars—Calamos InvestmentsTesla, Inc. 2.00% Convertible Senior Notes due 2024 (the “Convertible Notes Offering”) Issuer Free Writing Prospectus—U.S. Securities and Exchange CommissionRisk and Return in Convertible Arbitrage: Evidence from the Convertible Bond Market by Vikas Agarwal, William Fung, Yee Cheng Loon, and Narayan Y. NaikThe Fluctuating Maturities of Convertible Bonds by Patrick Verwijmeren, and Antti YangConvertible Bond Arbitrage by George Long—Eureka HedgeFor more information on this episode click here.Also, go here to learn more about Money For the Rest of Us Plus membership.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.