Falling rates favour convertibles
Article Abstract:
UK government securities and building society deposits are becoming less attractive, and this is increasing the attractions of convertible loan stocks. These stocks can form part of personal equity plans (Peps) which has increased demand, as has the firmness of government securities. The price of convertibles has increased, but they can still offer relatively good returns. Security has been improved as corporate profits have improved bringing better balance sheets.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Back in the limelight: a combination of demand caused by the forthcoming launch of corporate bond personal equity plans and the prospects of a slackening economy means that convertibles are back in favour
Article Abstract:
Conditions for convertibles are currently favourably as yields on UK government stocks fall and the FT-SE 100 index has reached a peak of 400 points above the low in January. Convertibles are usually unable to offer a yield of much over 8% without capital risk but there are still good opportunities for private investors investing in smaller companies. A table of stocks is given including Burton, NFC and Blenheim.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
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