User 153671

The Convertibles Collapse Offers Investment Lessons for All Investors

In the early sixties there was another convertible meltdown. Our clients had numerous loans at banks secured by convertible bonds at 5% to 10% margin. The banks called the loans when the Fed asked them to cut back on speculative loans. The market dropped like a lead balloon. There were very few buyers and many sellers. The firm I was with closed its convertible department and I left for better areas of the bond market.