Convertible Bonds: Theory vs Reality

Credit and equity markets are often dislocated.

The convertible bond market is dominated by the use of standard market model often based on estimations and assumptions.

Credit markets are prone to illiquidity, gap risk, negative convexity, and high correlation.

At FAM we utilises a systematic, credit-centric strategy built on our own data aggregation.

A non-consensus approach to fundamental company analysis driven by our diverse market experience.

Our approach allows us to reduce bias, minimise correlation with the market and avoid large drawdowns.