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The last major convertible bond issue in Canada was the $1-billion financing of BlackBerry Ltd. led by Prem Watsa’s Fairfax Financial.
The last major convertible bond issue in Canada was the $1-billion financing of BlackBerry Ltd. led by Prem Watsa’s Fairfax Financial.
(Aaron Harris/REUTERS)

Convertible bonds all the rage, except in Canada

Convertible bond offerings are being sold at the fastest pace in five years, but although Canada is making gains, proceeds lag the global average.

These bonds, which are eligible to be turned into equity if certain conditions are met, have grown in popularity as stock markets have continued to rise. Convertible debt issuance around the world is up 60 per cent from this time last year, pushing the tally to more than $91-billion (U.S.) – its highest point year-to-date since 2008, according to figures from Thomson Reuters released on Friday.