How does a small-cap company, product of a low-growth economy and political uncertainty, dropped in the middle of a volatile market by Providence, confused so much it hurts, pass up the chance to issue some converts?
We keep wondering. Maybe we need Lin-Manuel Miranda to do a Disney movie about Coupy, the Convertible Bond. Everyone wants to drive her but nobody wants to make her. So she sits there, just kind of an idea, until some great banker stirs things up.
The mismatch between demand—clearly there—and supply—which should be—confounds. One thing we know is that it feeds on itself, with the ranks of convertible bankers and salespeople thinning, seemingly by the day.
We got an email the other day featuring a quasi-advertisement for a trading service with the headline “Convertibles are Back in Style.” If only issuers agreed. The deal they’re missing out on is nothing short of remarkable. We might even say it’s yuge.
Ugh, why did we have to think of him?
To accommodate summer schedules, we will be publishing every other week between now and Labor Day. Our next issue will be on Monday, August 15th. We wish you the best during the rest of this most peculiar of summers.
(This is the cover letter for the subscription-based weekly Hillside's Hybrid Vigor newsletter. For a complete copy, please contact John Anderson at + 1 (646) 712-9289 x 107).