Gabelli's column

Some Optimism in the Convertible Securities Space


  1. While recent economic data signals a looming recession, earnings have been resilient, the labor market remains strong and share buybacks are approaching an all-time record for the year.
  2. Looking at the convertible securities space, the primary market has slowed significantly in 2022 but is beginning to pick up with August being the busiest month of issuance year to date.
  3. We see an opportunity for companies to issue new convertibles in exchange for existing issues. This could be an accretive transaction for the company while extending or laddering maturities to be more manageable.