Convertible debt provides investors with the benefits of both fixed income and equity investments. How is this possible? As the name may suggest, while this debt is a type of fixed-income security that yields interest, it can also be converted into a predetermined number of equity shares.
For this Sightline Conversation, Sightline’s Warren Gerow speaks with Jay Bala, founder, CEO and senior portfolio manager at AIP Asset Management, a Toronto-based investment manager whose convertible debt fund is distributed by Sightline affiliate, Ninepoint Partners. During this conversation, Gerow and Bala explain the intricacies of convertible debt funds and the numerous profit-making opportunities for this type of lending. Specifically, Gerow and Bala discuss:
- An overview of AIP’s pedigree, corporate philosophy and convertible debt fund
- The due diligence process before AIP advances funds for a loan
- The specific types of loans and sectors that AIP is interested in
- How companies typically use the money that is lent to them
- The role AIP plays in acquisition negotiations and other ways they add value
- The valuation criteria for the convertible debt fund on a monthly basis
- COVID-19’s impact on AIP’s current business and future prospects for this type of lending
You can listen to Gerow and Bala’s conversation here. As always, please contact us at (416) 945-6228 with any questions.
Warren Gerow is an independent investment wealth consultant to Sightline Wealth Management.
Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Sightline provides management and investment advisory services to high-net-worth individuals and institutional investors primarily through fee-based accounts.
Sightline Wealth Management LP is a wholly owned subsidiary of Ninepoint Financial Group Inc. (“NFG Inc.”). NFG Inc. is also the parent company of Ninepoint Partners LP, it is an investment fund manager and advisor and exempt market dealer. By virtue of the same parent company, Sightline is affiliated with Ninepoint Partners LP. Information and/or materials contained herein is for information purposes only and does not constitute an offer to sell or solicitation to purchase securities of any issuer or any portfolio managed by Sightline Wealth Management or Ninepoint Partners, including Ninepoint managed funds.
Sightline Wealth Management (“Sightline”) makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Sightline assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Sightline is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Past performance is not indicative of future performance. Please speak to your Advisor regarding the suitability of information provided in this article for you. The opinions, estimates, projections and/or recommendations contained in this document are those of the author as of the date hereof.