US Convertible Market Snapshot
November 2024
Riding aloft the post-election rally, convertibles soared in November and marked their seventh-consecutive monthly gain, driven by their strong underlying equities’ outperformance. Since the election, convertibles’ domestically oriented smaller-cap issuers and crypto-linked names are seen as beneficiaries of the president-elect’s agenda. Robust issuance added to the momentum, with 11 securities priced ($6.9bn), according to Barclays.
Elevated borrowing costs are a tailwind for the convertible market, underscoring the security’s cost-savings appeal. In November, $11.5 billion in new convertibles were brought to market globally. The United States led convertible issuance higher with $9.6 billion. Year to date, $105.8 billion in convertibles have been issued, eclipsing the 2023 calendar-year total of $79.4 billion. With a month remaining, 2024 is the seventh-best year of issuance on record.
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