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Hi Sarah, here's what you need to know for
<strong>
September 13th
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in
<strong>
3:15 minutes
</strong>
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<span class="font-normal" style="font-weight: 400;">
Companies are tapping the convertible bond market like it’s 2020 again
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Your reliance on stocks could be sabotaging your retirement –
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British households gave their highest inflation predictions in two years
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💸 Your bitcoin's probably worth more than your car. So join us for a free session with Meanwhile’s Jason Leibowitz and find out how bitcoin-denominated life insurance can help you protect your stack, cut future taxes, and unlock liquidity – all without selling.
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Top Down
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</p>
<p data-block-key="26hce" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
What’s going on here?
</b>
</p>
<p data-block-key="4dbdq" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
The convertible bond market is racing toward its busiest run in years, setting companies up for a luxurious drive into the sunset.
</p>
<p data-block-key="d0qjs" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
What does this mean?
</b>
</p>
<p data-block-key="543ht" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
Convertible bonds are a sort of stock-bond mashup: they pay interest just like any other bonds, but
<i>
less
</i>
of it – which is offset by the fact that they can be swapped out for stocks down the line.
</p>
<p data-block-key="3u7j5" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
► Because of that lower interest obligation, convertible bonds are a more affordable option for firms looking to raise money – plus, they won’t instantly dilute their stock. That’s made these kinds of bonds a popular choice in recent years (not least because interest rates have been high).
</p>
<p data-block-key="7l4ba" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
► $4 billion worth of deals this week pushed this year’s total issuance to around $75 billion – putting the convertible bond market on track for its busiest year since 2020.
</p>
<p data-block-key="66du2" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
Why should I care?
</b>
</p>
<p data-block-key="9i6ct" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
<i>
Zooming in:
</i>
</b>
<i>
It’s a want, not a need.
</i>
</p>
<p data-block-key="8m66o" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
Not every company issuing convertible bonds is necessarily in need of cash. For many, the conditions are simply too good to pass up. Borrowing costs are cheap, stock prices are sky-high, and investors are hungry for deals – a winning combination for convertibles. And with stock indexes still breaking record after record, you’ll probably see even more convertible bond deals popping up.
</p>
<p data-block-key="4idv4" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
<i>
The bigger picture:
</i>
</b>
<i>
The AI revolution, sponsored by convertible bonds.
</i>
</p>
<p data-block-key="6jkp7" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
Alibaba struck its own convertible bond deal this week, worth $3.2 billion. The Chinese tech giant will funnel the cash into its AI and cloud services. Makes sense: focusing on AI has sent the stock up over 80% this year already. In the same week, Nebius – a Dutch AI infrastructure firm – raised $2.8 billion through convertibles. Clearly, the bonds are becoming a go-to bankroller for one of tech’s hottest trends.
</p>
<p style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px; margin: 0;">
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<b>
You might also like:
</b>
<a style="color: #204CE9; color: rgba(32, 76, 233, 1); text-decoration: underline; font-weight: 500;">
“Nebius”, the AI stock you want to know now
</a>
.
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FROM OUR RESEARCH DESK
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Here’s How Much You Need To Save For Retirement
</h2>
<p style="line-height: 1.5; margin-top: 0; margin-bottom: 16px; font-family: Helvetica, Arial, sans-serif; font-size: 14px; color: #FFFFFF; margin: 0;">
Stéphane Renevier, CFA
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It’s not just you: we’re all obsessed with the latest hot stock, public listing, or AI breakthrough. But while you’re caught up in hot-and-fast headlines, it’s easy to lose sight of the bigger picture.
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At the end of the day, you want to
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retire comfortably
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– no matter whether you want to spend those years on the golf course, funding grandkids’ college years, or running hustles until you’re old and gray.
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So let’s take a look at the bad habits you might’ve picked up, and run through
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four factors that could make or break your golden-year plans
</a>
.
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*
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The “free” in Freetrade isn’t just there because it sounds nice…
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Freetrade’s ISA is now free for everyone:
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commission-free, subscription-free, tax-free
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.
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You could use the ISA to invest regularly and tax-efficiently, with over
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6,000 stocks and ETFs to choose from
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. Plus, your ISA is flexible, so you’re never locked in.
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By keeping more of your money instead of handing it over in fees or tax, your investments have more room to compound, helping you get closer to your financial goals. And you’ll be doing it all on an
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award-winning investment platform
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.
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Open a Freetrade ISA for free today
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Disclaimer:
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Capital at risk. ISA rules apply. Tax treatment depends on personal circumstances and current rules may change. Other charges may apply.
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When you support our sponsors, you support us. Thanks for that.
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If you want your brand featured here,
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get in touch.
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Mind The (Price) Gap
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</p>
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<b>
What’s going on here?
</b>
</p>
<p data-block-key="34noq" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
According to a Bank of England (BoE) survey, UK households’ inflation expectations just reached their highest level in two years.
</p>
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<b>
What does this mean?
</b>
</p>
<p data-block-key="a8ate" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
Brits now expect prices to rise 3.6% over the coming year and 3.8% in the next five. That’s their highest prediction since 2019 – and remember, the BoE’s target for inflation is just 2%.
</p>
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⚠️ This could be a self-fulfilling prophecy. Policymakers are worried that households expecting such expensive prices will push for higher wages in order to keep spending. That could create a feedback loop of pay and price increases that’s hard to break.
</p>
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Meanwhile, the UK economy stalled in July after a 0.4% uptick in June, sabotaged by the manufacturing sector’s worst showing in over a year. That one-two punch of stubborn inflation expectations and a slowing economy has revived fears of “stagflation”, putting the BoE in a tough spot. Households are already strained by food and energy costs – but if the central bank cuts rates too far, it risks fueling the very inflation Brits are worried about.
</p>
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<b>
Why should I care?
</b>
</p>
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<b>
<i>
The bigger picture:
</i>
</b>
<i>
Supermarkets weep.
</i>
</p>
<p data-block-key="59eqj" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
Morrisons, one of the biggest UK grocery chains, is cutting prices on about 650 everyday items. The goal: stop shoppers from switching to cheaper rivals. The complication: rival grocers like Asda and Sainsbury’s are doing the same.
</p>
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► While that might help Brits bag some bargains, it leaves the grocery sector’s firms fighting simply to survive, rather than to win.
</p>
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<b>
<i>
For you personally:
</i>
</b>
<i>
Renters are in a precarious situation.
</i>
</p>
<p data-block-key="5m4kk" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
Tenants are bearing the brunt of the UK’s cost-of-living crisis: rents have increased by 30% over the last four years. In fact, Londoners now spend – on average – nearly 40% of their income on rent alone. No wonder most folk who classified themselves as “very worried” about finances in a recent survey were renters. Then there’s the fact that nearly one in five UK households have less than £1,000 in savings... And with renters over-represented among those with fragile finances, they’re most at risk if unemployment rises.
</p>
<p style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px; margin: 0;">
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<b>
You might also like:
</b>
<a style="color: #204CE9; color: rgba(32, 76, 233, 1); text-decoration: underline; font-weight: 500;">
British investors broke up with US stocks – even as they rose
</a>
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<strong>
Copy to share story:
</strong>
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https://app.finimize.com/content/mind-the-price-gap
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QUOTE OF THE DAY
</div>
</td>
<td class="quote-content-cell" style="padding-left: 10px; vertical-align: top;" valign="top">
<p class="font-heading font-bold text-navy leading-snug mb-2 text-subtitle" data-block-key="cygyq" style="margin-top: 0; font-family: 'Poppins', Helvetica, arial, -apple-system, sans-serif; font-weight: 700; font-size: 20px; line-height: 1.375; margin-bottom: 8px; color: #0C73EC; color: rgba(12, 115, 236, 1);">
"Television is a medium because anything well done is rare."
</p>
<span class="text-caption font-normal text-blackLight leading-normal" style="font-weight: 400; font-size: 12px; line-height: 1.5; color: #3C4857; color: rgba(60, 72, 87, 1);">
– Fred Allen (an American comedian)
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*
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IN PARTNERSHIP WITH OPENING BELL DAILY
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🎯 On Our Radar
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1.
<b>
Microsoft’s AI chief issued a warning.
</b>
We need to
<a style="color: #204CE9; color: rgba(32, 76, 233, 1); font-weight: 500; text-decoration: underline;">
take machines’ “consciousness” seriously
</a>
.
</p>
<p data-block-key="ep8bv" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
2.
<b>
Politics as portfolio strategy.
</b>
Turns out you can
<a style="color: #204CE9; color: rgba(32, 76, 233, 1); font-weight: 500; text-decoration: underline;">
invest in DC drama
</a>
.
</p>
<p data-block-key="fj98f" style="font-size: 16px; line-height: 1.5; color: #283444; color: rgba(40, 52, 68, 1); font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px; margin: 0;">
3.
<b>
Not every brand needs its own celebrity.
</b>
<a style="color: #204CE9; color: rgba(32, 76, 233, 1); font-weight: 500; text-decoration: underline;">
Brand ambassadors
</a>
are everywhere – and maybe they shouldn't be.
</p>
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