Convertible Bonds
Convertible bonds are bonds that can be converted into shares of stock in the issuing company, usually at some pre-announced ratio. It is a hybrid security with debt- and equity-like features. It can be used by investors to obtain the upside of equity-like returns while protecting the downside with regular bond-like coupons.
Read more about this topic: Equity Derivative
Famous quotes containing the words convertible and/or bonds:
“But every jet of chaos which threatens to exterminate us is convertible by intellect into wholesome force. Fate is unpenetrated causes.”
—Ralph Waldo Emerson (1803–1882)
“In America a woman loses her independence for ever in the bonds of matrimony. While there is less constraint on girls there than anywhere else, a wife submits to stricter obligations. For the former, her father’s house is a home of freedom and pleasure; for the latter, her husband’s is almost a cloister.”
—Alexis de Tocqueville (1805–1859)