Convertible Bonds : The High Return Asset Class That Vanguard Abandoned

Convertible Bonds : The High Return Asset Class That Vanguard Abandoned

How convertible bonds work, why they gained 50% in 2020 and outperformed stocks over the past five years. Why Vanguard shut down their convertible bond mutual funds.

Topics discussed include:

  • How big is the convertible bond market
  • Why companies issue convertible bonds
  • How convertible bonds work and how to analyze them
  • Why convertible bonds have performed so well
  • What is a reasonable expected return for convertible bonds and what are the risks
  • What are ways to invest in convertible bonds


Thanks to Netsuite for sponsoring the episode. Take the Money For the Rest of Us listener survey.


Show Notes

A Plunge and a Recovery Drives a Top-Performing Year in Convertibles by Andrew Bary—Barron's

Convertible Bond Indices: An Overview by SPDR EMEA ETF Strategy Team—State Street Global Advisors

CONVERTIBLE SECURITIES: Structures, Valuation, Market Environment, and Asset Allocation by John P. Calamos, Sr with contributions from Eli Pars—Calamos Investments

Tesla, Inc. 2.00% Convertible Senior Notes due 2024 (the “Convertible Notes Offering”) Issuer Free Writing Prospectus—U.S. Securities and Exchange Commission

Risk and Return in Convertible Arbitrage: Evidence from the Convertible Bond Market by Vikas Agarwal, William Fung, Yee Cheng Loon, and Narayan Y. Naik

The Fluctuating Maturities of Convertible Bonds by Patrick Verwijmeren, and Antti Yang

Convertible Bond Arbitrage by George Long—Eureka Hedge

For more information on this episode click here.

Also, go here to learn more about Money For the Rest of Us Plus membership.


See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Episoder(571)

Do Retiring Baby Boomers Actually Move Markets? And How Much Do Demographics Really Matter

Do Retiring Baby Boomers Actually Move Markets? And How Much Do Demographics Really Matter

As Baby Boomers continue to retire, some analysts expect financial markets to feel the strain. We examine whether demographic shifts truly shape stock and bond returns, or what other factors matter mo...

10 Des 202523min

Burnout, Breaks, and the Courage to Spend with David Bach

Burnout, Breaks, and the Courage to Spend with David Bach

David converses with best-selling author David Bach about preventing burnout through sabbaticals, moving to another country, why retirees should take Social Security as early as possible, and Bach's i...

19 Nov 202542min

Sports Betting Is Not Investing

Sports Betting Is Not Investing

Can you really make money sports betting on low-risk, high-probability events?Topics covered include:The growing size and influence of the U.S. sports betting marketRecent sports betting scandalsHow s...

12 Nov 202520min

Hoarding, FOMO, and Zcash: A Private Bitcoin

Hoarding, FOMO, and Zcash: A Private Bitcoin

What’s the difference between hoarding and investing? There’s a reason markets built on productive assets—like stocks and bonds—are far larger than hoarding markets such as gold and cryptocurrency. In...

29 Okt 202521min

Don’t Take Financial Advice from AI

Don’t Take Financial Advice from AI

How AI gets simple finance wrong, and how to make it work for you, not mislead youTopics covered include:How AI ignores the time value of moneyA detailed example of ChatGPT misleading by making a simp...

22 Okt 202526min

Debasement Fears or Meme Fever? What’s Driving the Gold and Silver Rally

Debasement Fears or Meme Fever? What’s Driving the Gold and Silver Rally

Are gold and silver up more than 50% in 2025 because investors fear currency debasement, or is this rally just the latest meme trade? In this episode, we explore the supply and demand forces behind go...

15 Okt 202518min

Beyond Munis — New ETFs for Tax-Efficient Bond Investing

Beyond Munis — New ETFs for Tax-Efficient Bond Investing

How to decide when to invest in municipal bonds versus new tax-efficient bond ETFs that don't invest in munis.We analyze several newer ETFs that earn bond-like returns while avoiding paying taxable in...

8 Okt 202526min

Money for the Rest of Us Update

Money for the Rest of Us Update

This week there isn’t a regular Money for the Rest of Us episode, but David shares an update on what’s happening behind the scenes. He previews an exclusive Plus member livestream on the forces shapin...

24 Sep 20256min

Populært innen Business og økonomi

stopp-verden
dine-penger-pengeradet
lydartikler-fra-aftenposten
e24-podden
rss-penger-polser-og-politikk
rss-borsmorgen-okonominyhetene
pengepodden-2
finansredaksjonen
tid-er-penger-en-podcast-med-peter-warren
livet-pa-veien-med-jan-erik-larssen
morgenkaffen-med-finansavisen
rss-markedspuls-2
pengesnakk
utbytte
lederpodden
rss-pa-konto
liberal-halvtime
rss-fa-makro
rss-investering-gjort-enkelt
rss-impressions-2