Record Converts

Well I'm heavenly blessed and worldly wise
I'm a peeping tom techie with x-ray eyes
Things are going great
And they're only getting better
--Timbuk 3

Tech companies have been issuing convertible bonds at record rates. As indicated by the graph below, previous highs occurred in 2000 and 2007.

Implication: market demand for converts tends to be highest when stock prices are peaking.

position in SPX