Convertible Bonds

The fact that this award category even exists for the international ocean shipping industry is pretty darned remarkable when you stop and think about it. After all, it was only a couple of years ago that shipping companies were having a hard time convincing the capital markets they would even be alive the next year, never mind using sophisticated derivative instruments that have conversion maturities a whopping 20 years in the future.

But then a funny thing happened. Even though the conventional wisdom was that the volatility of shipping stocks was a negative for investors, the convertible bond market and the Black Schoales model it relies on figured out that volatility actually has some real value. But such is the nature of progress and, thanks to the fact that the shipping and bond markets were equally white hot, some truly inconceivable deals were executed.

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