Convertible craziness.

Securities sales soar, but risk is understated The IPO and mergers-and-acquisitions markets may be in the deep freeze, but the convertible-securities market is going crazy from the heat. Wall Street bankers tout convertibles as the best of both worlds for investors -- the safety features of a straight corporate bond and the upside potential of a stock. But the popular sales pitch often overstates the safety they offer. They are more likely to fall into default, experts note, and the recovery rates are much lower than conventional bonds, which means investors are more likely to be left hold...