Dog days of summer? Don’t tell the convertible market. Issuance has been surprisingly active of late, perhaps spurred by increased geopolitical anxiety and a trend of high-yield outflows. Perhaps bankers are convincing issuers not to wait forever to tap a still-willing market. Whatever the reason, it’s encouraging to see issuers coming to market. It also gives investors more reason to tread lightly with high-HARP (Hillside Adjusted Risk Points), particularly those on our Ugly 20 list, such as Priceline’s 0.35% bonds. Those appear to have contracted by two to three points since the announcement of the new deal.
We comment on Priceline and a number of other recent deals in today’s issue of Hybrid Vigor. In deference to the dog days, we will be publishing once a week (Thursdays) for the next three weeks before going back to our twice-a-week schedule the week after Labor Day.
We are also planning a series of events beginning in mid-September to meet readers and talk about what we’re hoping to accomplish with Hybrid Vigor. Details to follow. As always, thanks for your support and feedback.