The Healthcare sector has traditionally been well represented in the convertible bond universe, usually ranking only behind Technology in size. Healthcare companies opt to issue convertible bonds for varying reasons, including balance sheet considerations, acquisitions, debt refinancing, or share repurchases. Biotechnology & specialty pharma companies, in particular, have historically utilized the convertible bond asset class considerably to finance their growth objectives.
Bonds Are Not Protecting You From Inflation
This paper delves into how bonds may not be as effective as expected in safeguarding