News & Insights

Sometimes a seemingly modest tweak to strategy can have profound implications for a company. One such recent example is Spacetalk (SPA.ASX), which under the helm of new management has had a recent development which could lead to a material change in the group’s financials and value.

A warrant is much like an option. The key difference is that warrants are usually negotiated whereas options tend to be more standardised.

Hybrid securities, also known as convertible loan notes, can be a way to gain exposure to both income and growth, but like any investment they come with some risks.

With macroeconomics news still dominating the conversation, the key concern we hear from our investors is: what happens to my investments if there is a recession? Should they be worried, or have stock prices already factored in these events?

In 2009 a Bloomberg article cited “The collapse of capitalism”. In ensuing months the stock market rallied, subsequently rising +150% over the next decade. What lessons can we use to understand sentiment in today’s stockmarket, particulary in small-caps?

The most common way for a company to raise funding is by using debt or raising equity. A third method, which is a hybrid of these two, is from issuance of convertible notes. In this brief article we discuss some of the pros and cons for companies using this form of financing.

The hybrid nature of convertible debt provides investors with significant benefits – greater security and asset stability coming from the value of the bond, and equity upside coming from the conversion into equity. Ultimately this delivers investors superior risk adjusted returns.

Convertible notes are an attractive middle ground between the risk & reward of shares, versus the fixed return & downside protection of debt. In this article we cover off how they work and the key terms to look out for.

Convertible notes or convertible funding can be a useful tool for raising capital, particularly when the value of your equity is lower than you think it should be, and you can’t access the level of funding you need through traditional debt.