Opportunities and inefficiencies in the Canadian convertibles market.
Geoff Castle talks with Morley Conn, Director of Equity Hybrids at Scotiabank Global Banking and Markets. Together they take a deep dive into the convertibles market to uncover the opportunities, inefficiencies and features of convertibles, as well as swapping war stories.
[01:19]
The conversation kicks off with Geoff asking Morley about his start in the convertible bond market.
[04:12]
Morley gives a background on the Canadian and US convertibles markets and their relative sizes and differences.
[08:16]
Geoff asks Morley for his take on the long-term odds of being involved with the convertible asset class.
[10:42]
They discuss what you might find attractive and unexpected about convertibles and Morley shares what he loves most about convertibles.
[13:49]
The conversation turns to the inefficiencies of the convertibles market, pricing extremes, opportunists and examples.
[21:10]
Morley hones in on several features of a convert, including change of control and why dividend protection on a convert was implemented and how it works.
[31:28]
Geoff asks Morley about “the big one”, equitization.
[37:53]
Geoff asks what is one of Morley’s all-time favourite stories that has come from trading in the convertibles market.
[39:38]
Geoff closes the podcast by asking Morley what he is currently reading.
