A convertible bond yields lower returns than the normal bond. The return reflects the fact that the company allows the customer to convert the bond into a specific number of shares. The convertible bond offers a fixed stock price and often reflects a much higher price than the market.
Convertible bonds are far less risky when used to manage portfolio risk than alternatives like the hedge fund. Unlike traditional bonds, the price goes up if the market rises. If the market drops interest rates usually do too and the interest return becomes important. They also bring in substantial gains if traded for that purpose. The use of quotes for convertible securities makes the trading easier.
The best contacts and resources to help you get it done
Get a convertible bond quote from an online service
There are varieties of companies that give free quotes for your convertible bond. Many times traditional market quotes don't include updated information on the bonds, so it is important to find one that services that need. Online brokerage accounts often supply the needed information when you have an account with them.
I recommend: BondsOnline offers a quoting service for their customers. Many online brokerage accounts do not offer this type of specialized service. Another online brokerage that provides quotes on convertible bonds is
optionsXpress, Inc.
Use a convertible bond quoting service that allows you to compare
In order to choose the best convertible bond for your client or your own brokerage account use a service that not only gives quotes but offers opportunities to compare it to other companies.
I recommend: BQuotes not only quotes the bond but keeps you linked to the underlying stock that backs the convertible bond. This company offers a multi-informational link for the busy broker.
SciComp Inc. offers software to price not just convertible bonds, but also derivatives. The service is primarily for the back office.
Watch the price of convertible bonds for maximum return
Many brokerage accounts offer pricing and other information on convertible bonds. Brokers can call bond dealer or their back office or use a profession service to find bonds to recommend.
I recommend: Thomson Reuters offers a multitude of information for pricing convertible bonds, both for the professional broker and individual.
Zions Direct, a subsidiary of Zion Bank, offers free quoting service for their clients.
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