Investing In Convertible Bonds

Investing In Convertible Bonds FAQ

Where to buy convertible bonds?

You may only be able to purchase convertible bonds through a financial advisor or investment advisor that specifically offers these types of fixed-income investments. There is a work-around, however. You could gain access to convertible bonds by investing in mutual funds, index funds or exchange-traded funds (ETFs) that hold these bonds.

Do convertible bonds belong in your portfolio?

Convertible bonds can add value within a diversified portfolio by reducing risk while maintaining expected return. Convertibles offer greater potential for appreciation than ordinary corporate bonds and the investor can convert to benefit from stock price gains.

Where to find convertible bonds?

You could gain access to convertible bonds by investing in mutual funds, index funds or exchange-traded funds (ETFs) that hold these bonds. These are often readily available through online brokerage accounts.

What are convertible bonds funds?

Convertible bonds are corporate bonds that give you the alternative of converting their value into common stock of that company or redeeming them for cash when they mature. The details governing the conversion, such as the number of shares of stock you would receive, are set when the bonds are issued.