Global Convertibles Investor Survey: De-risking but deployed

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Global Convertibles Investor Survey: De-risking but deployed

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Global Convertibles Investor Survey

De-risking but deployed

Converts investors have been de-risking their portfolios… 21 July 2026

Positioning and sentiment data have largely softened, implying that CB investors have Convertibles Strategy

been reducing their risk-on positioning. Our latest Global Convertibles Investor Survey Global

showed that investors with a global mandate have trimmed their exposure to the

highest-delta CB markets (the US and Asia), rotated from higher-beta CB market sectors

(tech and healthcare/biotech) into lower-beta sectors (industrials and financials), and

prefer converts from perceived-safer larger-cap issuers compared to those from

smaller-caps. Perhaps even more tellingly, a larger portion of outright convertible bond

managers are now actively hedging as well, a sharp shift from the previous quarter.

Michael Youngworth, CFA

…as they fear the rally in high-flying tech may be overdone CBs,BofASPfds & Derivs Strategist

The data suggests last quarter’s de-risking may be partially due to concern that the +1 646 855 6493 michael.youngworth@bofa.com

high-flying rally in tech and AI-linked names, which have powered CBs’ very strong year-

to-date gains, may be cooling. Notably, convertible bond managers identified a tech

crash as their top concern in the near-term, and they expect more limited broad equity

market upside from here, both in absolute terms and relative to other asset classes.

We include a list of abbreviations at

Secondary market valuations are an additional challenge the end of this report.

Besides concerns about peaking tech shares, CB managers have also flagged full

secondary market valuations as a key challenge. Indeed, investors believe US and