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Fixed Income

SPDR Convertible Bond ETFs

Delivering in volatile markets.

Convertible bonds are debt securities that combine features of both debt and equity. They have many of the characteristics of traditional corporate bonds such as a maturity date, potentially a regular coupon, but also have an embedded option for the holder to convert the bond into a predetermined number of shares.

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Why Choose SPDR?

What is a Convertible Bond?

Convertible Bonds Explained

Learn the fundamentals of convertible bonds in this educational video. Discover how convertible bonds work, their unique features, the risks and why investors find them appealing.

Why Global Convertible Bonds?

Key Benefits

  • Upside participation: the option to convert allows investors to participate in rising markets as the value of the option rises along with equities.
  • Downside cushion: when equity markets fall (and the value of the equity option decreases) the bond floor kicks in, potentially protecting the portfolio.
  • Diversification: the asymmetric nature of convertible bonds and their convexity mean more de-correlation from equities in sell-offs, thereby diversifying the overall allocation.
                                                                                                        

Meet the Author

Bio Image of Antoine Lesne

Antoine Lesne

Head of ETF Strategy

Antoine is a Managing Director of State Street Global Advisors and Head of ETF Strategy & Research for EMEA. Antoine's responsibilities include developing a strategy framework for the existing SPDR ETF range to align it with financial market developments and long-term economic outlooks. This is delivered through research on ETFs as well as market analysis that support the distribution of ETFs across EMEA. Antoine is a regular commentator on markets via press and TV programs such as CNBC Squawk Box.

For questions or any further information please Contact us. You can also stay connected with us on LinkedIn

For questions or any further information please Contact us. You can also stay connected with us on LinkedIn