A seven month drought of convertible bond issuance in Europe has come to an end with global steel company Arcelor Mittal launching a €1.1bn ($1.5bn) deal, which received strong demand from equity and fixed-income investors keen for more stable investments.

Convertible bonds are securities that offer investors the option to convert debt for equity at some point in the future. Many investors believe they are a more stable alternative to investing in equities at a time of high market volatility.