Parametric transformers are magnetic components which employ a variable inductance to generate parametric oscillations in a secondary resonant tank. Power conversion with parametric transformer can provide constant output voltage regulation, short-circuit protection, input over-voltage and under-voltage protection, and bidirectional filtering. In spite of these benefits, parametric transformers did only experience small scientific attention during the 1970s. Due to the low energy density and low efficiency of the topologies developed at the time, parametric transformers were discarded in favour of the more common power converters based on the magnetic amplifier. In spite of the great developments in power semiconductors, magnetic amplifier control still remains a competitive option in present-day power electronic applications benefiting from its high robustness. This publication presents a new topology of parametric transformer based on permanent magnet (PM)-inductors, presenting higher efficiency and higher energy density. Finite element method magnetics simulations are used to analyse the variable inductance mechanisms. A physical prototype is developed and tested empirically in an AC/DC power converter. The prototype verifies all the mentioned benefits of parametric power conversion, and presents an efficiency and energy density equivalent to presently employed solutions for voltage regulation, using power semiconductor magnetic amplifiers.