en     ru     jp
 
 
private banking
private banking
private banking
private banking
private banking
private banking
private banking
     
 
Home
      
Knowledge Base
      
Equity Derivatives and Structured Products Glossary
      
Convertible bond
       
 
Back

Convertible bond

 Search definitions     
  Search  

Convertible bond
A Bond issued by a company that may be exchanged by the Holder for a number of that company’s shares at a predetermined ratio, or at a Discount to the share price at maturity. Because the convertible embeds a call Option on the company’s Equity, convertibles carry much lower rates of Interest than traditional Debt and are therefore a cheap way for companies to raise Debt. The problem for existing shareholders is that conversion dilutes the company’s outstanding shares.Typically, bonds are convertible into a company’s own stock. There are however ‘third party convertibles’, which convert into shares of another company.

See also Equity Warrant, Resettable convertible bond
Posted by  Privatebanking.com
 
  Back  
  Print  
  Email  

 

private banking
Get Adobe Flash Player to view the media
FlashPlayer required to view the media
private banking
private banking
private banking
private banking
private banking

 
Home News Library Newsletters Event Calendar Advertise About Contact FAQ
Privacy Policy     Terms of Service
 

©