I have not posted anything for quite a while because I was working on a book that I like it very much. I have finished it finally! And I also had a lecture on last Friday about Greenspan's book, The age of Turbulence. That was a very special book club, in which, all members are women. I have a lot to say about the lecture, but for now, I am going to talk about Convertible Bonds, CB.
A couple of years ago, when people (in Taiwan) did not know very well about CB, I traded CB quite a lot, and made some money. The only reason that I made money is, people don't know anything about CB, and think it was a low liquidity, exotic instrument. So its price was underestimated, until it was converted to common shares or it was put.
Low liquidity is not a serious problem, but lack of information was, and still is. People don't know where to get the required information, and even if they know, they are not able to manipulate it.
I built a CB system several years ago in the company. But now, I am out on my own, so I don't have Reuters or Bloomberg, and I don't have a team to maintain the database either.
Fortunately, a lot of firms have found the merits of CB and joined the market. Although they have taken all the fruit in the lower branches, they somehow provide happy free data.
Yesterday, started from these free data, I set up a free CB worksheet. It is easy to maintain, and no pains. The spread sheet is dirty and quick, so it is not fancy at all, but you have almost every thing. By the way, it is real time.
The only thing I did is to take a free CB list form the securities house, and build a excel spreadsheet with DDE functions. That’s all.
A couple of years ago, when people (in Taiwan) did not know very well about CB, I traded CB quite a lot, and made some money. The only reason that I made money is, people don't know anything about CB, and think it was a low liquidity, exotic instrument. So its price was underestimated, until it was converted to common shares or it was put.
Low liquidity is not a serious problem, but lack of information was, and still is. People don't know where to get the required information, and even if they know, they are not able to manipulate it.
I built a CB system several years ago in the company. But now, I am out on my own, so I don't have Reuters or Bloomberg, and I don't have a team to maintain the database either.
Fortunately, a lot of firms have found the merits of CB and joined the market. Although they have taken all the fruit in the lower branches, they somehow provide happy free data.
Yesterday, started from these free data, I set up a free CB worksheet. It is easy to maintain, and no pains. The spread sheet is dirty and quick, so it is not fancy at all, but you have almost every thing. By the way, it is real time.
The only thing I did is to take a free CB list form the securities house, and build a excel spreadsheet with DDE functions. That’s all.
