Knowledge

Convertible Bonds

Numerous theories and statistics exist about convertible bonds. But the first convertible bonds have already been issued in the 19th century to finance the railroads in the U.S. Several studies about convertible bonds prove it can definitely be considered as an own asset class.

Rather than adding examples, technical explanations or quantitative results showing the effects of introducing convertible bonds into a portfolio, IFP Fund Management SA encourages all interested persons to contact us so we can provide you with answers to your questions.

Behavioral Finance

The financial behavior is the permanent overlap of modern portfolio theory, the rationality of valuation models, and with systematic information analysis helping to qualify the psychological condition of the market. Why must we worry about the psychological condition of the market participants?

Because investors do not always react rationally to fundamentals.

Thus, the asset valuation taken individually and collectively regularly parts from the fundamental equilibrium price from the valuation models. The concept and opinions an investor has one market or title is playing an important role in the short and medium term, whether in the long term, the fundamental is important.

The information related to the psychology of the market help to arbitrate some of these gaps in the short term. They allow to adjust the portfolio in time to take advantage of trends and cycles.

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