Securities Lending Trends: Convertible Bonds - Daily Securities Finance Report

With most major equity asset classes showing a reduction in borrowing demand over the past 2 years, let’s look at what is bucking that trend. Demand to borrow Convertible Bonds doubled over the past 12 months. It has since fallen back but remains close the levels last seen in 2008’s rampant market. A typical convertible bond arbitrageur buys the bond and shorts the equity. So what is going on here?

To read the full report, please click here