We looked through the S&P Capital IQ Fixed Income database to see how many public offerings of corporate convertible debt took place in the US between 2010 and 2016. Here’s what we discovered.
In the last six years, technology firms issued the most convertible debt, followed closely by organizations in healthcare and financial services. Bringing up the rear? Utilities, consumer staples, and telecommunications companies.
Market Sector of Convertible Debt Issuers Since 2010
Data is current as of February 16, 2016
In 2015, issuances of convertible debt were off about one-fifth from their 2014 high. Still, the number was 25% higher than in 2010.
Convertible Debt Issuances and Total Dollar Offerings by Year
From January 1, 2010 to February 16, 2016
The S&P 500 has the greatest proportion of companies that have ever issued convertible debt, at 43%. The Russell 2000 has the smallest proportion at 21%.
But if you consider just the six years between 2010 and 2016, the proportion of S&P 500 companies that have issued convertible debt is only about half the proportion of Russell 2000 companies.
Convertible Debt Issuance Statistics by Index
Based on index constituents as of February 17, 2016
Does your company issue convertible debt—or are you interested in doing so? Equity Methods can help!