Convertible bond issuance has surged in 2026, with global deals up 67% from a year earlier in the second quarter. The appeal for issuers is simple: they can borrow at low or even zero coupons when conventional debt is costly, and many are refinancing notes sold in the 2020 and 2021 wave. The biggest deals have come from AI, semiconductor and data center companies that must spend heavily before revenue arrives. Investors like the mix of a bond claim and equity upside, and volatile tech shares make the conversion option more valuable. But a zero coupon is not free money, since hedging costs and dilution are real, and fast issuance can pull in weaker credits. Selectivity matters. 

Finsum: Convertibles can offer growth exposure with a cushion, but advisors should favor active managers who can separate sound issuers from those simply reaching for cheap capital.