US Convertible Issuance Tanks as Markets Swing, Rates Stay Uncertain
- Only $2 billion worth of new convertibles issued this month
- Volume for 2024 unlikely to reach $100 billion: Voris
Recent market jitters are causing a bifurcation among potential convertibles issuers, largely depending on their credit ratings and the resulting interest savings.
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The US stock market’s August whipsaw has convertible bond issuers hiding, and that’s likely to continue into September with the movement of interest rates still up in the air.
Only $2 billion worth of new notes have been issued so far this month in the US, a far cry from the $7.6 billion raised during the same period last year, according to data compiled by Bloomberg.