Posts tagged as:

reverse convertibles

Yet more reverse convertibles: positive sum games?

June 19, 2009

Did Felix Salmon really just write this in defense of his reverse convertibles stance?? For one thing, stocks generally go up over time: they’re a positive-sum game. ... Retail investors, as a rule, have no business buying instruments with limited upside but 100% downside — I’d even include individual bonds in that, despite the fact that […]

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Reverse convertibles

June 17, 2009

Ever since the WSJ published this article on the front page of section C, a lot of people are talking about "reverse convertible notes." James Kwak and Felix Salmon led a charge to ban the instruments but Felix, at least, seems to have backed off a little bit after these responses. I've seen many varieties of […]

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