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It has been a banner year for new issues of convertible bonds, with many forces working together, especially in Europe, to support the primary market. Low interest rates and hopes for equity market growth have prompted more and more investors to buy convertibles and the pressure on companies to enhance shareholder returns and to unwind cross-holdings has prompted the issuers. High stock market volatility, following last year's financial meltdown, has also helped the market. This is the full text version of a roundtable discussion, exclusive to Euromoney On-Line.

Last month's €2.3 billion issue of convertible bonds for Mannesmann promised to mark a revival of the convertible market, but within a week of its (successful) launch it was hit by Mannesmann's bid for Orange of the UK. At its launch on October 6, the deal was significantly oversubscribed, though it had been done on terms which raised plenty of eyebrows. The yield to maturity was 3.875%, towards the bottom of the indicated range and the premium conversion - the share price at which the bond could be exchanged for equity - was one of the highest seen this year at 38% above the prevailing share price. A high conversion premium usually points to a bullish equity market, but this deal came as the equity markets were looking rocky.

Edited by Rebecca Bream

We live in a time when the necessity, desirability and inevitability of ever more bank mergers is simply taken for granted by bank executives, shareholders and regulators. The model of the ruthless cost-cutting merger, so firmly established in the US in the last seven years, has increasingly been adopted worldwide. As producing shareholder value becomes the prime motive of managers in national banking industries which for years have been overprotected by governments, overpopulated by too many unprofitable players, and inefficiently run, mergers - it is now taken for granted - are the only way to boost returns by cutting costs.

When cutting costs is not enough

Mannesmann has pitched into some speedy, expensive takeovers, but is still a takeover target. That's a symptom of the rush for change affecting nearly all German companies. For years investors complained that German managers were too slow and cautious; now many have become dangerously impulsive. By Laura Covill.

Edited by Antony Currie

Edited by Rebecca Bream

Citigroup's latest acquisition

It's been a rollercoaster ride. First investors were desperate to buy any stock available, now they are withdrawing funds. But how much is the grey market to blame? Laura Covill reports.

Trading on indigestion

Joining the Wall Street party