Case Study: The Case for Convertibles

The Case for Convertibles
Convertibles Offer Optionality not Available in Most Asset Classes

Convertibles Offer Participation in the M&A Cycle or Growth Stocks
With Less Volatility

Following strong performance and record issuance of convertible bonds over the last several years, investors are beginning to take notice of the attractive characteristics of this unique asset class. The hybrid construction of convertibles can offer a compelling way to participate in risk-on markets while offering some downside support during market pullbacks. Pier 88’s Investment Team posits that convertibles are a defensive way to gain exposure to growth stocks with less volatility. The case study of next generation security vendor Proofpoint, Inc. (“PFPT”) is demonstrative.