Weaknesses of break-even analysis It ignores the main advantage of convertible protection on downside risk on the underlying equity It ignores the margin of safety offered by the convertible with the payment of principal at maturity.8 Weaknesses of break-even analysis • It ignores the main advantage of convertible: protection on downside risk on the underlying equity. • It ignores the margin of safety offered by the convertible with the payment of principal at maturity