Using median and other metrics to measure the valuation level of the convertible bond market seems to have issues?

2026-03-06 09:36:23

Is there really meaning in the equal-weighted index and median? With new convertible bonds entering and exiting, and bonds at different prices coming in and out, shouldn’t that affect the index?

After downloading the data post-new regulations, I created scatter plots of 【Remaining Size】 and 【Equal-Weighted Index】. From the chart, it appears that smaller sizes correspond to higher equal-weighted index values. Is the increase due to the convertible bonds themselves rising, or is it because the shrinking size is causing the increase?

When demand exceeds supply, the equal-weighted index naturally rises. So, is it still scientific to use the median, equal-weighted index, to measure whether convertible bonds are high or not?

Feel free to discuss~

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