Welcome to the fifth week of Hybrid Vigor.
We continue our Monday tradition of presenting the Hillside Ugly 20, a list of names particularly exposed to a blend of premium contraction and absolute price decline. Read on to see which name makes its long-awaited debut on the list this week—and why it took so long.
A number of healthcare convertibles get air time today. We’ve long been fans of the marriage of biotechnology and convertibles—largely because the biotech industry, unlike most others, tends to support its balance sheet with equity when the opportunity arises. This tendency, as well as the group’s acquisition appeal to big pharma, has made biotechs far less prone to bankruptcy than one might expect.
As always, keep your comments and suggestions coming. We will continue to make this “beta” version available through mid-fall before going to a subscription model. Please send a copy of Hybrid Vigor to your friends in the center and on the fringe of the convertible market. We hope to make Hybrid Vigor a standard resource for asset managers who know a bit about convertibles but want to learn more. If you know anyone like that (and we all do), please forward today’s letter to them and have them contact us.
As always, we thank you for your interest and support.
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Co-Founder and Managing Principal
Hillside Advisors LLC