Restored, red, and ready for top-down driving| ClassicCars.com Journal
Convertible bond issuance is at a record high, with companies ‘benefiting’ from low interest rates and high equity volatility. However, convertibles are not the cheap form of financing that is sometimes claimed, nor do we think that so-called ‘hedging’ transactions, which often accompany convertible issues, create value for investors.| The Footnotes Analyst
Changes to convertible bond accounting under US GAAP will mean higher reported debt but, paradoxically, a lower (and sometimes zero) interest expense. In our view, the resulting increase in earnings is artificial, fails to faithfully represent the cost of convertible financing and will not benefit investors. The recent surge in convertible issuance, and the use of so-called convertible bond hedges, may have more to do with favourable accounting than favourable economics. We use the recent con...| The Footnotes Analyst
Featured on AutoHunter, the online auction platform driven by ClassicCars.com, is this 2003 Chevrolet Corvette 50th Anniversary convertible.| ClassicCars.com Journal
