Convertible Bonds/Research

Specialists at work

The Global Convertible Bonds unit of Jefferies (Switzerland) Ltd. in Zurich is staffed by seasoned convertibles specialists whose skills include the ability to exploit opportunities in markets with below-average liquidity. As the convertibles universe grows, the task of monitoring market developments has become all the more difficult. This is where Jefferies brings cutting-edge technological aids to bear, examples being the world's largest convertibles database (JELS) and the Jefferies Active Convertible Index (JACI), which was launched in 1994, has since become established as a global benchmark for the sector and is constantly being refined. It goes without saying that our clients are constantly kept up to date with regular reports that allow them to maintain an overview of individual convertible issues, specific sectors and the JACI as a whole.

Special services

Increasing demand from clients has prompted us to develop and offer tailored products such as structured bonds. The success we have enjoyed in this regard has further encouraged us to continue putting clients' interests first in everything we do. We have, for instance, launched a series of structured convertibles in which the underlying stock in each case is the market leader in its particular segment. This Market Leaders Series will be added to in line with demand from clients and market developments. We also provide comprehensive advice and support to companies issuing convertibles of their own. Having a clear understanding of the needs of both the issuer and the investor ultimately enables us to offer advice that is both penetrating and practical. Jefferies has lead managed a number of issues from Germany and India in recent months.

Convertibles – a valuable addition to your portfolio

After more than 10 years spent analysing thousands of convertible bonds (including their historical price data), we have built up a sufficiently reliable body of intelligence to enable us to say how, why and when they can add value to a portfolio. Our experience of the world's major stock markets in the most diverse market scenarios shows that the risk-adjusted returns offered by convertibles can significantly enhance the performance of equity and bond portfolios.
A balanced convertibles portfolio responds to developments in either the equity or fixed-income markets depending on which of the two is performing better at a given point in time. This can be a highly useful feature in the investment process as it mitigates the impact of equity and bond weightings while increasing the total portfolio return. By diversifying into convertibles as an alternative to straight equity investments, investors can optimise their risk/return profile.
Our convertibles specialists have an astonishingly broad array of active portfolio management options open to them. They can add value by combining traditional country and security selection techniques with a specially developed approach to convertible bond selection and appropriate market timing. What is more, only specialists like this have the experience required to exploit opportunities in markets with below-average liquidity.

10-year analysis

After more than 10 years spent analysing thousands of convertible bonds (including their historical price data), we have built up a sufficiently reliable body of intelligence to enable us to say how, why and when they can add value to a portfolio.
Adrian Hope and his team published a 10-year analysis of price trends on the global convertibles markets in mid-2003. This informative 28-page report, together with an update produced in 2005, can be obtained free of charge in German or English via e-mail (info@jefferies.ch) or
telephone +41 (0)44 227 16 00.