Today the group key first tangible dividendsBut 40000 euros or more for a comprehensive studyThey are to sell between 3000 and 4000 eurosUnlike her Barack Obama does not come with an already defined planThen think of those that never talks SMEsIncluding by respecting the local differencesWhere an industrial disaster that has already cost 1The debt in the airWell acquired benefits neverDrain and sprinkle with purée of shallotsAll for a price around 80 cents per litreThe recent issuance of ExonHit Therapeutics demonstrates the tendency of small companies to use diverse means of financing, such as convertible bonds. In wanting to lift more than EUR 15 million (EUR 17.7 million with the extension clause), through convertible bonds, the biotechnology company is the first company of Alternext to use these products typically part bond and convertible optional part in actions.
The interest of the average values for convertible bonds is certainly not new, but the recent trend shows that companies are increasingly small. Thus, the median size of emissions rose from EUR 275 million to EUR 235,7 million between 2005 and 2006, calculations of Exane.
Small and medium-capitalization in number, represent the largest part of the market: 19 of 31 issuance of convertible bonds since the beginning of the year is the capitalization of less than 3 billion euros, according to data from the General society.
At the same time, their share in global volumes is all the more important that emissions are declined for two years and that refunds exceed widely, even if the amounts will be in 2006 higher than in 2005. "The convertible bond market has taken a new configuration adapted to the economic context has changed from the early 2000s." Spreads remain tight, volatility is relatively low, and large companies still have much of cash on their balance sheet, which limits their appeals to the market, says Marlene Hassine, analyst on convertible bonds at the Société Générale and author of a study on mean values published this week. This predominance of emissions small and medium-capitalization should continue as long as the environment is not changing.
Wide range of products
Same observation for Luke Olsen, responsible for the research convertible at Barclays Capital, which anticipates more and emissions of mean values and a geographical diversification enhanced in the future (especially in Central Europe and the is).
In addition, "large corporations have at their disposal a very wide range of financing including the more elaborate products, adds Ghislain de Brondeau, responsible of the team"equity-linked"to the Société Générale. Convertible bonds are ideal for small companies, which are often not the subject of credit ratings agencies or who have low ratings. "They generally have a more restricted access to the classic bond market".
And this all technical parameters appear more favorable to the mean values: for example, at 100-day historical volatility is higher for the capitalizations of less than 3 billion for their big sisters.
At the same time side investors, while analysts are more skeptical about this class of assets on equity markets, the "mid cap" segment in convertible bonds still retains a certain attraction. Thus, in contrast to the trend observed for the shares, convertible bonds "averages" upgrading remains lower than that of large values, according to data from the Société Générale.
Similarly, in terms of performance, index ECI of Exane Midcap euro area, with an increase of 15.5 since the beginning of the year exceeds far counterpart large cap ( 7.5). "The average index is more sensitive to the increase of the underlying," says Laurent Roussel, Deputy Director of research derived from Exane.
However, selectivity, there also remains, development. "We are of sanguine on convertible bonds issued by mean values, because of their profile of notation", said Hubert Lemoine, managing in Acropolis AM.
