Convertible Securities: A Complete Guide to Investment and Corporate Financing Strategies

  • 8h 43m
  • Dan Partlow, F. Barry Nelson, Tracy V. Maitland
  • McGraw-Hill
  • 2022

The definitive guide to reduced-risk investing in the $600+ billion global convertible securities market From Advent Capital Management―one of the world’s top experts on convertible securities―Convertible Securities describes the mechanics and behavior of convertible securities in comprehensive yet easy-to-understand language.

Written for discerning investors as well as corporate CFOs and treasurers, Convertible Securities provides quantitative insights and theories presented in a methodical and understandable format using recent and relevant examples. It explains the mathematical underpinnings of convertible securities and offers thorough analyses of convertibles from every angle, including those of various types of investors and issuers and numerous related disciplines (tax, performance analysis, accounting, risk management, and others). Topics include:

  • Unique and Valuable Features in Convertible Bonds and Convertible Preferred Stocks
  • How Savvy Investors Use Convertibles in their Portfolios
  • How CFOs Optimize Corporate Capital Structures with Convertibles
  • Valuation & Quantitative Properties of Convertibles
  • Psychology and Investing in Convertibles
  • Asset Allocation Models that Weigh the Advantages of Convertibles
  • Practical Considerations for Convertible Investors―and much more!

A high value-added asset class with a unique record of achieving equity-like returns with less risk than outright investment in common stocks, convertible securities are perfect for times when markets are at their most unpredictable. Convertible Securities offers everything you need to make them work for you, now and in the future.

About the Author

Tracy V. Maitland is President and Chief Investment Officer at Advent Capital Management, LLC. Prior to founding Advent, he served as a Director in the convertible securities department in Merrill Lynch’s capital markets division, where he was instrumental in introducing convertibles as an asset class to major institutional investors worldwide.

F. Barry Nelson, CFA is a retired Partner of Advent Capital Management who served as a Portfolio Manager and who continues to serve as a Senior Advisor to the firm.

Dan Partlow is a Managing Director and the Chief Risk Officer of Advent; he was previously the Chief Risk Officer of Stanfield Capital Partners.

In this Book

  • Introduction to Convertible Securities—Equity-like Returns with Less Risk
  • Traditional Convertible Strategies
  • Convertible History—Steam Railways to the Internet Highways
  • Global Convertibles by Sector—Funding Technology, Growth, Turnarounds
  • Behavior and Risk Aversion in the Context of Convertibles
  • Convertible Indices, Performance, and Asset Allocation
  • Hedged Convertibles—Basics and Performance
  • Convertible Valuation Basics
  • Advanced Convertible Valuation
  • Risk Management and Exposure Analysis
  • Understanding Sensitivity to Equity Prices—Delta, Gamma, and Vega
  • All-in Yield and Sensitivity to Credit and Rate Markets
  • Convertible Hedging Techniques and Analysis
  • Convertibles and Convertible-like Structures in Private Capital Markets
  • Optimizing Corporate Capital Structures with Convertibles
  • Convertible Accounting, Taxation, Regulation, ESG Standards, and Execution