FT News Briefing

Convertible bonds are so hot right now

Jan 4, 2024

10:36

Snipd AI

Recent release of Fed's December meeting minutes, convertible bonds' popularity for corporate fundraising, deadly blast in Iran, Russian prisoners released for fighting in Ukraine

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Quick takeaways

Federal Reserve officials intend to keep interest rates high for some time, suggesting a more positive outlook on interest rates and inflation.

Convertible bonds offer lower interest rates for US companies, reducing borrowing costs and providing potential equity conversion if share prices rise.

Deep dives

Federal Reserve reinforces commitment to high interest rates

The minutes from the December meeting of the Federal Reserve revealed that most officials intend to keep interest rates high for some time, contrary to market expectations of an interest rate cut. While many Fed officials anticipate rate cuts in 2024, they also expressed greater confidence in inflation decreasing. These minutes suggest a more positive outlook on interest rates and inflation.

Introduction

2min

Exploring the Popularity of Convertible Bonds for Corporate Borrowers

2min

Investor Perspective on Convertible Bonds

2min

Deadly Blast in Iran and Russian Prisoners Released to Fight in Ukraine

5min

Minutes from the December Federal Reserve meeting show that officials were committed to higher-for-longer interest rates, convertible bonds have been a rare bright spot for corporate fundraising, and two bombs killed more than a hundred people in southern Iran yesterday. Plus, some Russians convicted of gruesome crimes are returning to their communities after fighting in Ukraine.

Mentioned in this podcast:

Fed officials said rates could remain high ‘for some time’

US companies dive into convertible debt to hold down interest costs

Bomb blasts at Iranian commander’s grave kill nearly 100

The Russian murderers sent home as free men after fighting in Ukraine

The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help by Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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