P204 CEEFAX 204 Sun 151May 23:59/04 ] G bRIEFING Convjutibl stocks hav rest ned to fav b n h t mont o a2 their pric s have fallen and yield gone up. heir particular vice and vi tues, howe)ju, ar no as well understood as they might bj. Too oft n c n j t ble r b ht for no better reason than that th yield more then equities. Vow, wish lower prices making them a mot attracti6 pr p iti n, it is worth illustrating how best the can bj put to use. UT panel 207 St ks 8annl 2X6 Next News Featur Mot Panel Vat Sa6ngP204 CJEFAX 204 Sun 15 May 23:54/40 5/5 JEFIV W £££££ ££ £ k Alliance & Leicester b p i t t Discounted Mortgages ffer ng the opt n of co r ion Loan to 1sa ear Ratd hath a 2 22 Up to 70% a 4.69% 2d 5% Up to ;0 . 9 3 65 For the saki of argument, thjuj ma9 o h 2 Availabfe as: endowment, 8jnsion and rjpaymtnt mmrtgadat. Ea ly red mption p malty: mths entire st (at basic ate) if 2 0 mortgage is r deemed wi,him 3 75ars F-ature 224 kr pfink 20 Next News Market P nil F at4r Sa6unksP204 CJJFAX 204 Sun 15 May 23:55/43 3/5 c IEFINK Ckn6juthble ;Tgcks£ m1rkku 8rhad i5 determined bX three baatmu2. 0 $hesj are: (1) the attraction o5 othjr5i3j of 1 bond+u "cmupkn" (it3 fixed rate gf interest(; (2) ht1 mat5rhtz (hw6 m5ch r5uthkz tw0£g 0 until redemption?); and (9) the market price of the share1 into R $hjsj often contradictory prjusurjs on convertibles' market price are a fe5thle skurcj gf cgnf53ion. !k a Better perhaps if the convj:sign rUghts cVuld bj traded sjparatel9. UT 0anbd 20 QTR Next News FeaturjBMkt Panel Nat Savj3P204 CEEFAX 204 Sun 15 May 23:50/41 G cRIEFING 5 A c n tible sro and hi l apply whjthjr it is strictly "loan stock" or "preference share" m is said to be trading at a premium as long as the pricd at which holdurs are entitled to convert into share3 is higher than the shake pricd. Con6jrtibleu carr:ink big prjmi5ms - meaning that they are a long way from being worth converting into shares - tend to trade much niku 0 ordinary bonds - gilts, say - and tend tg offe5 high 9ields. -hose trading close to conversion levels pby less and fluctuate more. UT panel 207 Stoats panel 06 Next News Feature Mot Panel Nat SavesP204 CEEFAX 204 Sun 15 May 23:51/18 ] G cRIEFIVG Would-bj investors in convertibles should ask themselves what they are looking for before pitching in. Those aiming for income,0while 1t the same time looking for a ca8ital gain in the long term, should pick a convertible offering a relativel9 high 9ield - so long as the company appears solid - but standing some way above its conversion terms. Otherwise, con6jutibles 1hould be regarded as an alternative means of bu:ing sharer, in which case thjX should bj bought at levels near to their conversion terms. U$ panel 207 Stocks pankl 206 Next N w atur Mot Panel t S