Convertible Bonds Offer Protection Against Stagflation, Other Ills Facing Markets: Daniel Partlow (Szn 4, Ep23)

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Daniel Partlow, chief risk officer at Advent Capital Management, joins the podcast to discuss convertible bonds. Partlow is a specialist in these securities, having written a book on the subject titled 'Convertible Securities: A Complete Guide to Investment and Corporate Financing Strategies.'

Content Highlights

• First, the basics: What are convertible bonds and how do they work? The asset class has actually been around for more than three centuries... (3:29);
• Some of the characteristics of converts include a maturity of about four to five years but with low interest rate sensitivity of much shorter duration bonds (6:42);
• A typical balanced convert will provide downside protection (via the bond floor) and upside potential through the equity participation (9:18);
• Converts have done well in inflationary environments, with less volatility than stocks (11:44);
• The default rate for converts is a fraction of high yield and leveraged loans (20:38);
• Background on the guest (24:59);
• The specter of stagflation and how converts can protect against that (27:50);
• Where might there be particular opportunities in the converts market right now? (33:07);
• Examples of individual securities that may be of interest (37:52).

More Background on the Guest

• Website and link to the book mentioned in the introduction.

Additional Information

The following slides were supplied by Advent Capitaol Management.