Convertible Bonds

There are many theories and statistics concerning convertible bonds. However, the first convertible bonds were issued as early as the 19th century to finance railroads in the United States. Many studies demonstrate that definitively convertible bonds can be considered a separate class of assets.

Rather than supplying examples, technical explanations or quantitative results showing the advantage of adding convertible bonds to portfolios, here at Mirante Fund Management SA we encourage you to contact us so we can answer your questions.

Behavioural Finance

Behavioural Finance means constantly combining the lessons of modern portfolio theory, the rationale of valuation models and the systematic analysis of information, thus enabling the psychological state of the market to be assessed. Why should we concern ourselves with the psychology of market participants?

Because investors do not always react rationally to fundamentals.

Thus, asset valuation taken individually and collectively regularly differs from the fundamental balance as it results from valuation models. The perception and opinions an investor has of the market or of a security play an important role in the short and medium term, whereas in the long term, the fundamentals  should not be disregarded.

Information about the psychology of the market helps to mitigate some of those discrepancies in the short term. They enable the portfolio to be adapted in time to take advantage of trends and cycles.

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