Featured Commentary


Convertibles / Commentaries

Convertibles Underperfomed in 2011

02/14/2012 Despite the uncertainties of global economic conditions last year—a downgrade in the U.S. credit rating, political gridlock in Washington, Europe’s unending debt crisis, as well as declining home prices, and higher oil quotations--the Dow Jones Industrial Average managed to end the year up 5.6%, thanks to a 12% increase in the fourth quarter.
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Convertibles / Commentaries

Warrant Hedging: A Timely Strategy

07/25/2011 The exceptional leverage provided by warrants makes them ideal candidates for hedging. A warrant hedge consists of a long position in a warrant and a short position in the underlying common stock.
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Convertibles / Commentaries

Long-Term Value Investors May Want to Take a Closer Look at Warrants

06/20/2011 One of the issues common-stock investors face when waiting for a downtrodden issue to rebound is that their capital is tied up and unavailable for other, possibly more productive, uses. However, financial instruments, such as warrants, can help mitigate this problem. Indeed, they may be a good option for long-term investors that are bullish on battered stocks or sectors, such as financials.
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Convertibles / Commentaries

Investment Opportunities Among Unranked Convertible Bonds

02/18/2011 The Value Line Convertibles Survey assigns a Performance Rank to convertibles in our database whose underlying common stock is ranked for Timeliness/Performance in one of its sister publications, The Value Investment Survey or The Value Investment Survey Small and Mid-Cap Edition. Not all the convertibles in our database are ranked, though. Of the 622 convertible bonds and preferred stocks currently in our Survey, 131 (or about 21%) are unranked. Unranked convertibles are not considered for inclusion on our Especially Recommended list. However, the absence of a rank does not necessarily mean that a convertible is a bad investment.
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Convertibles / Commentaries

Fourth-Quarter and Full-Year Results

01/12/2011 Although convertibles tend to lag their underlying stocks in an upbeat market, that was not the case in 2010. In fact, convertibles in our universe outperformed all major indexes except one, the NASDAQ Composite.
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Convertibles / Commentaries

Commonly Asked Questions about Convertibles

12/23/2010 New investors in convertible security may not understand the complexity of this asset class and become frustrated. We provide answers to some of the most commonly asked questions and hope new investors will better understand convertibles.
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Convertibles / Commentaries

The Convertible Advantage

10/28/2010 Some convertibles offer very limited downside risk in regard to its underlying common stock activities, while providing relatively high yields. And chances are that if the underlying stock rises significantly, there is the potential for worthwhile price appreciation in the convertible.
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Convertibles / Commentaries

Short Maturity Convertibles

09/10/2010 Shorter maturity bonds, those due to mature in less than five years, have advantages. In fact, they can be very attractive additions to a convertible portfolio.  The clearest benefit is a relative insensitivity to moves in interest rates, while still offering relatively high yields. 
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Convertibles / Commentaries

Value Line’s Convertible Indexes and Market Prolfiles

07/23/2010 The Value Line Convertible Indexes have long been used as benchmarks of convertible market performance. But these indexes are only part of the convertible market data that we compile and make available to subscribers. Our Convertible Market Profile provides important additional information about the convertibles market and how convertibles perform as an asset class.
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