Hybrid Vigor: Vol 2 Issue 8 "Is It Spring Yet?"

Dear Friends,

Back from Las Vegas (no Nic Cage here) after managing to scratch out a modest profit thanks to accommodating blackjack dealers and a 30-1 shot at Oaklawn Park in Arkansas.  Not enough to pay for the trip, but a great time and a needed break from this brutal winter.

So let’s see—a $4.2 billion mandatory, huh?  Well, I guess it’s a lot better than the deal not happening.  One of our most astute readers says he prefers mandatories to traditional convertibles in today’s world, since the high premiums and low deltas of standard convertibles make them far more difficult to hedge.  No argument there.  We continue to think the environment is right for more mandatory issues—especially because of the possibility that mandatories may be targeted for particularly onerous dividend-tax treatment in the not-so-distant future.

With every passing week we get closer to our official rollout of our HOCS 100 issue.  We continue to get asked when it’s coming out, and the answer is soon.  In the meantime, we give you a little taste this week, enough to show that HOCS 100 should be a truer convertible benchmark than your current choices. We also note some interesting changes in the composition of the HOCS 20.

Jeff Alton has a highly informative look at Solar City in this week’s issue—you’ll come away better informed about this piece of the Musk Empire.  For a royal crush, see this week’s On-Deck Circle candidate.

Is it spring yet?

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