More NewsLiquidity Key Factor For Convertibles Investors – Research

Liquidity Key Factor For Convertibles Investors - Research

Liquidity is the driving criterion for institutional convertibles investors in selecting their brokers, both for institutions in the United States and in Europe, according to study by Greenwich Associates. An overwhelming percentage of investors in both markets list trading quality to be either ‘extremely’ or ‘very important’ with 98% of institutions in Europe and 94% of U.S. institutions giving such ratings to that category. Further, institutions in both markets indicate they award about half of the commissions to brokers solely on the basis of their capability and willingness to provide liquidity. These investors cite brokers‚ convertibles underwriting capability and sales coverage quality as the second- and third-most-important selection criteria, respectively. While European and U.S. institutions using convertibles are remarkably similar in most respects, one key difference is in the risk profile of their portfolios. In the U.S, 47% of the average convertibles portfolio is invested in below-investment-grade instruments, versus just 25% in Europe.

Related Articles

Infosys Finacle to power Santander UK’s international cash management system

More News Infosys Finacle to power Santander UK’s international cash management system

4w The Global Treasurer
Preparing for GDPR? Here’s four things to consider

More News Preparing for GDPR? Here’s four things to consider

4m Elliott Wiseman
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

5m Conor Deegan
Treasury TV: Karen Pugsley, Domino's Pizza Group

More News Treasury TV: Karen Pugsley, Domino's Pizza Group

5m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

5m Victoria Beckett
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

6m Victoria Beckett
Banks are selling clients short with short dated cash deposit U-turns

Banking Banks are selling clients short with short dated cash deposit U-turns

6m Victoria Beckett
What does sterling’s Brexit boost mean for UK manufacturers?

More News What does sterling’s Brexit boost mean for UK manufacturers?

6m Tasja Botha