Companies, notably those with speculative-grade debt ratings, like convertible bonds because they can raise money at rates lower than those on ordinary bonds. According to Dealogic, companies have issued $5.7 billion in U.S.-listed convertible bonds, up 49% for the same period year-over-year, reports Stephen Grocer for the Wall Street Journal. Companies issued $44 billion in U.S.-listed convertibles last year, the most since 2008.
CWB also tracks a sizable chunk of speculative-grade debt, including below Baa 38.1% and not rated 31.4%.
SPDR Barclays Convertible Securities ETF
For more information on the fixed-income market, visit our bond ETFs category.
Max Chen contributed to this article.