The instinct to access the AI theme via convertible bonds runs into an immediate obstacle: Nvidia, the hyperscalers and the dominant semiconductor names – the companies that have driven the bulk of AI-related equity returns – are not convertible issuers. For investors in the asset class, this looks like a structural exclusion from the most important investment theme of the decade.
But it isn’t.
It’s a redirection toward an equally interesting but less obvious part of the trade.
And it is not a marginal one: AI-adjacent issuers now make up more than 30% of the global convertible bond market, up from low single digits a few years ago according to BofA Global Research. The theme the asset class supposedly missed has quietly become one of its largest exposures.
AI-linked portion of the global convertible bond market
Where the convertible opportunity sits
The AI opportunity is not a single company or even a single sector. It is a stack, and the layers below the headline names are where the convertible bond market has its exposure. Infrastructure providers, software enablers and data management companies share a common profile: high growth potential, uncertain profitability timelines, and capital requirements that make the convertible structure a natural financing instrument.
The convertible format of equity upside participation with a bond floor aligns precisely with that profile. Investors are not being asked to take a binary view on which infrastructure provider wins or which software layer dominates. They are participating in the upside if it materialises, with downside bounded by the bond component if it does not.
The names that have mattered
The dispersion of outcomes within this group has been significant. CoreWeave, Nebius, Cloudflare and Snowflake have all been meaningful contributors to convertible bond returns year-to-date. These names operate in an ecosystem where the AI build-out is creating genuine value and provide access to the AI trade without taking a view on Nvidia's next earnings quarter.
The convertible bond market doesn’t own the AI megacaps. But what it has instead is the infrastructure, the software and the enabling layer – the parts of the ecosystem where growth is real, outcomes are uncertain, and asymmetric instruments are most valuable.
The companies referenced in this insight are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. The information provided is to illustrate our current investment activities and approach only, and should not be construed as offer, research or investment advice. Past performance and other indicators or metrics do not predict future outcomes. Please read important information at the end of this communication.
MID-YEAR 2026 INVESTMENT VIEW
Convertible Bonds
IMPORTANT INFORMATION
The content on this page is intended for professional investors only and should not be relied upon by retail or private investors.
This publication is for information, education, and non-commercial purposes only. It is not suitable for readers who have no prior knowledge of financial markets. The views and opinions expressed are those of the named author(s) and may not necessarily represent views expressed or reflected in other Mirabaud communications.
It does not constitute an offer and is not intended to provide investment advice or investment recommendations. Any sectors, asset classes, securities, regions or countries shown are for illustrative purposes only and are not to be considered a recommendation to buy or sell. This publication is not intended for and cannot be shared with any person who is a citizen or resident of any jurisdiction where the publication, distribution or use of the information contained herein would be subject to any restrictions.
Past performance does not predict future returns. All investment involves risks, including loss of the money invested. Diversification does not necessarily ensure a profit or protect against losses in declining markets. There is no guarantee that any particular asset allocation or mix of investments will meet given investment objectives or generate a given level of income. Exchange rate changes may cause the value of any cross-border investments to rise or fall. In general, investments in stocks and bonds are subject to risks such as country/regional risk, issuer, volatility and currency risk, which are not necessarily addressed herein. Do not base any investment decision on this publication alone.
This publication has been prepared without taking into consideration the objectives, financial situation or needs of any particular investor or type of investor. Neither the issuer nor its affiliates accept liability for any loss incurred in connection with the use of the information available in this publication. The sources used are deemed reliable. However, the accuracy or completeness of the information cannot be guaranteed, and some figures may only be estimates. Statements of facts, opinions, estimates, analysis or conclusions contained herein are provided in good faith and without obligation to update, revise or complete. They are subject to change without notice and may be revised at any time. This material may include projections, forecasts, and other forward-looking statements which are hypothetical in nature. They involve certain risks and uncertainties that could cause actual results to differ from those stated herein.
Mirabaud Asset Management (MAM), all rights reserved. Partial reproduction subject to proper quoting, full reproduction subject to MAM prior consent.
Continue to
