Hello,If it were possible to foresee convertible issuances, what characteristicsof the firm should I be looking at. Any ideas greatly appreciated.Regards

theoretically firms that need money but don't want to create immediate dilution by issuing stocks and want to attract investors by offering upside will issue convertiblesthis can include good and bad credits, young and established firmspractically the popularity of convertibles is very cyclical and depends on the interest rates and the economylately they've been very popular while all the IPO market was dry, convertibles had record issuances ...I am sure others can tell you more

If it were possible to foresee convertible issuances, what characteristics of the firm should I be looking at. Any ideas greatly appreciated. >>

Taxable income is one good indicator. Firms with lots of it like straight debt, because the higher coupon payment helps reduce taxes. Firms will none of it generally lack the cash flow to service debt. Firms in the middle find convertible debt attractive.

Most convertibles are offered by low-credit issuers (BBB or BB at time of issuance) with a lot of stock volatility. A few high credit issuers offer convertibles, usually zero-coupon (it doesn't take much equity upside to take an investment grade credit down to zero coupon). Typically they structure the conversion price such that the coupon rate on the debt is slightly lower than what top-credit issuers pay.