Oriental Credit & Rating: Convertible Bonds Should Emphasize Defensive Positioning on July 14

According to Oriental Credit & Rating, on July 14, the research firm released a report stating that convertible bonds should maintain a defensive posture in the near term amid U.S.-Iran tensions, stronger Federal Reserve rate hike expectations, and weakened technology narratives. The convertible bond market is expected to remain pressured alongside equities, with rapid theme rotation and intense market sentiment persisting. Structurally, large-cap dividend-paying sectors with stable earnings are likely to outperform due to risk-aversion demand. Recent convertible bond ETF counter-cyclical positioning is expected to further amplify the relative advantage of large-cap convertible bonds.
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