State Street SPDR Bloomberg Convertible Securities ETF·Financial Services

Convertible bonds sit in an odd corner of capital markets: corporate debt with an embedded equity option, paying coupon income while carrying upside tied to the issuer's stock.

The pitch for the SPDR Bloomberg Convertible Securities ETF (NYSEARCA:CWB) is simple: collect a coupon, keep equity upside, sit between stocks and bonds. CWB has rewarded holders nicely on the way up. The risk most owners do not price in is that when equity markets crack, CWB stops trading like a bond fund and starts... CWB's Convertible Bond Strategy Looks Like Bonds Until the Equity Markets Fall, And Then It Trades Like Stocks

Corporate America is tapping the convertible bond market at a record pace as companies linked to artificial intelligence drive a surge in demand for debt that often draws extra investor interest in hot markets because it can convert into equity.

Investors may be better off looking outside the world's core bond markets right now, Brij Khurana writes in a guest commentary.

SPDR Bloomberg Convertible Securities ETF (NYSEARCA:CWB - Get Free Report) was the recipient of a significant growth in short interest in the month of March. As of March 31st, there was short interest totaling 1,615,559 shares, a growth of 20.6% from the March 15th total of 1,340,135 shares. Based on an average daily trading volume,

Elevation Capital Advisory LLC decreased its position in shares of SPDR Bloomberg Convertible Securities ETF (NYSEARCA:CWB) by 18.3% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 54,994 shares of the exchange traded fund's stock after selling 12,314 shares during
The State Street SPDR Bloomberg Convertible Securities ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Bloomberg US Convertible Liquid Bond Index (the "Index")Seeks to provide exposure to the market of U.S. convertible securities with an issue amount of at least $350 million and a par amount outstanding of at least $250 millionConvertible bonds are bonds that can be exchanged, at the option of the holder, for a specific number of shares of the issuer's preferred stock or common stockRebalanced on the last business day of the month
Financial Services
Asset Management
2009-04-16
1.02
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