Stumbles, physical and verbal. Some weakness widely observed, a cough or two. Stories going around. Comments from people who say what they think they heard. A strange hostility abounding despite an abundance of evidence of value.
What, you thought we were talking about Secretary Clinton? Come on, you should know better. Convertibles, convertibles, convertibles.
They’ve been kicked around. In the spring of 2005 all the wise asset allocators said to avoid them. If you hung in there you had a great 2006, with robust issuance for several years.
Then we had the financial crisis, from which hedge funds have never truly recovered, even though some big performance comebacks in 2009-2010 made people who somehow managed to hold onto seats through the crisis filthy rich. Issuance comebacks, not so much. But even this year, with all its drawbacks, has been a pretty healthy year for performance.
Back to issuance. We’ve had fits and starts. Perhaps last week’s return was more than a fit and a start, with a handful of well-received deals from known names. Repeat offenders, those companies that know the asset class, keep coming back to issue more bonds. Shouldn’t that be telling non-users a thing or two?
Anyway, we soldier on. Rewards accrue to those who do their homework and stay the course. We plan to be in for the long haul, especially with the new strategic alliance we happily announced last week.
(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).