Up until this week, finding an index of convertible bonds has been limited to just a single participant in the exchange-traded fund world. The SPDR Barclays Convertible Securities ETF (NYSE: CWB) debuted in 2009 and has been able to successfully gather over $3 billion in total assets.
Convertible Bonds
CWB invests in a basket of 100 convertible securities with outstanding issue sizes greater than $500 million. State Street defines convertible securities as "bonds that can be exchanged, at the option of the holder, for a specific number of shares of the issuer's preferred stock ('Preferred Securities') or common stock."
These securities essentially function as a hybrid debt and equity instrument that can take on characteristics of each asset class. For this ...
/www.benzinga.com/etfs/new-etfs/15/06/5569306/ishares-rolls-out-new-convertible-bond-etf alt=iShares Rolls Out New Convertible Bond ETF>Full story available on Benzinga.com
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