US Convertible Market Snapshot
March 2026
The first quarter demonstrated the benefits of convertible securities. As equity markets fell, convertibles provided access to growth while dampening downside volatility. The US Convertible market advanced 3.72% in the first quarter, as measured by the ICE BofA US Convertible Index, and held up favorably relative to the -4.33% decline in US equity markets, as reflected by the S&P 500 Index. The market benefited from its relatively small exposure to mega-cap technology, while its AI-related holdings in data storage and communication services strongly outperformed.
Convertible issuance marked one of its strongest calendar year starts in recent memory. Although March’s new issue total slowed from February’s total as geopolitical uncertainty increased, it still represented the best month of March since 2021. We expect issuance to reaccelerate as market conditions stabilize and believe the sustained higher-rate environment will continue to make convertibles an attractive refinancing option for issuers.
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