Orient Jincheng said renewed US–Iran hostilities, firmer Fed rate‑hike
expectations and a weakening tech narrative have accelerated sector rotation and
heightened trading volatility; convertibles are likely to follow underlying
equities and remain under pressure, so short‑term allocations should emphasize
defensive characteristics. Structurally, large‑cap, steady‑earnings sectors
should outperform amid risk‑off flows, and recent inflows into convertible ETFs
tilted to big‑cap issues will accentuate that relative strength. Faster issuance
is expanding listings at the margin and supports new‑issue valuations, making
primary deals an important source of incremental yield. With underlying stocks
under strain, short‑dated convertibles may offer opportunistic trades tied to
potential downward conversion‑price adjustments.
