MS INVF Glb Convertible Bonds: Qual. Rating Issued
Morgan Stanley Global Convertible Bonds comes across as a solid fund, but it’s difficult to get excited about it.
"Convertible bonds are designed to allow investors to participate in a measure of any equity upside while the bond floor is in place to offer a degree of capital protection. In theory this sounds like the best of both worlds; the reality, as shown in 2008, is a little different: while the asset class didn’t fall as much as equities, liquidity disappeared which made it almost impossible to trade and limited its effectiveness as an asset class."
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