Wednesday, May 1, 2019

Convertible Debentures: Online Again!

In the past, I have found a few gems among the Canadian convertible debentures, including PineTree and Data Group. So it was more than a little annoying that the National Post stopped maintaining their online listings of these securities.

Felix Choo at The Canadian Convertible Debentures Project has done an admirable job of picking up the mantle, and provides detailed updates on a subset of the universe. If you're interested in this space, you should definitely check out his work.

But what I wanted was a comprehensive list. One where I could find the most hated, spat out, bloodied names, in the hopes of scraping some value off of a distressed seller in an otherwise sleepy market. So I made one. You can find it here.

It's useful for more than just bottom-feeding. There are some high flyers on it too. When the common shares do well, the convertibles also take off for obvious reasons. And yet, they maintain some downside protection that the common shares do not.

Let me know if you find any errors or omissions. Happy hunting!


Anonymous said...

Thanks for this list!

Anyway to add notes too, like GCM.NT.U?

I own that one because it’s got a nice yield (~8%+), the underlying is not very levered (~0.4x net debt/ebitda) and they amortize quarterly with bonus payments dependent on the gold price.

I also think EFR.DB is an excellent way to get exposure to Uranium which I think bottomed last year and while EFR loses money, this piece of debt is less than working capital.

IVQ.DB.V is probably my favourite piece of straight debt (I own it for the YTM) on the list although DHX.DB has become interesting lately.

Thanks again!

Saj Karsan said...

Thanks for the ideas, Anon.

I'll look into adding more fixed income names (e.g. notes, prefs) to that list.