MFM Global Convertible Bonds
Fears about the spread of the coronavirus epidemic, covid-19, shook the financial markets to the core. After anticipating that the economic impact of the epidemic would be confined to China and the supply chains that depend on Chinese production, investors repositioned themselves. They fear a weakening of corporate profits and a significant slowdown in global growth. Stocks endured one of their most significant declines since the financial crisis of 2008, with many indices losing more than 10% in less than a week. This meaningful correction was surprisingly rapid.
In this complicated environment, and even without a strong spread widenings in the credit side, the behaviour of convertible bonds was exemplary compared to other asset...