European Convertible Bonds Step Up as Haven in Tariff Storm
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Convertible bonds — a near-dormant corner of Europe’s capital markets — are emerging as a refuge in the wake of the upheaval sparked by President Donald Trump’s push to remake US trade policy.
A regional index tracking debt securities that can convert into shares has returned more than 9% so far this year, partly driven by instruments issued by defense players such as Rheinmetall AG and Safran SA. That stands in contrast to key global benchmarks for equities and bonds, many of which are either nursing losses or have seen their 2025 gains nearly erased.