Market insights

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The massive price slump in growth stocks could represent an interesting opportunity for investors. Convertible bonds would be a sensible alternative to shares to take advantage of this opportunity.

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The risk/reward ratio for emerging market corporates has improved considerably. Default rates are low and valuations are favourable. This translates into commensurate potential for returns.

Record losses in bond markets in the first half of the year were extremely painful for investors. Global corporates now offer attractive yields against the backdrop of an expected soft landing of the economy and promising fundamental and technical factors.

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Convertible bonds are well suited to the kind of extremely uncertain market and economic environment that we are currently experiencing. Their "automatic timing" assists investors with their asset allocation.

A sharp economic slowdown or even a recession should bring IG corporates into focus, which offer relatively good protection compared to lower-rated bonds and equities.