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To: Just My Opinion who wrote (7)9/1/1998 11:26:00 AM
From: Sun Tzu  Read Replies (3) | Respond to of 10655
 
What are convertible bonds and how do they compare to stocks or bonds? Why would I consider them rather than either of the above? I don't have any experience with them so perhaps you can tell us more. Am I taking more risk with them (a bond risk + a stock risk) or less (due to diversification).

Thanks in advance
Sun Tzu



To: Just My Opinion who wrote (7)9/1/1998 1:40:00 PM
From: OldAIMGuy  Read Replies (1) | Respond to of 10655
 
Hi A, There's even a selection of closed end funds that work the conv. bond market. You can own them and play the Premium/Discount range as well.

I've used heavily discounted conv. bonds many times in my portf. but have just one or two right now. After a major market downturn lasting about 2-3 months, there's some real bargains in the conv. bond market. They traditionally have fallen much slower than their common stock partner.

Best regards, Tom