Jackson

You've got questions.

He's got answers.

Carl, what you got for us?

Have companies issued the most convertible bonds in 24 years in 2025?

Investors are embracing funding that starts safely on the runway but leaves room for takeoff.

Here's what I mean.

If a stock and a bond had a baby, it would be a convertible bond.

It pays interest like a bond but can be transformed into shares at the bondholder's discretion.

For companies, convertibles are a cheaper way to raise cash.

For investors, they combine stock-style upside with bond-like protection.

Still, it's good to read the fine print.

Many of today's offerings come from AI-related companies.

That means the market leans heavily on a single trend.

If AI investment slows, those bonds could drop much like the underlying stocks.

And you might not get much cushion.

Fast growing firms often skimp on interest because investors are focused on the stock price payoff.

Less bond-like value means less protection from a stock-like fall.

Also, if lots of investors try to sell at once, losses could snowball.

Here's the bigger picture.

AI spending is driving borrowing across the board.