Convertible bonds: Difference between revisions
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== See also == | == See also == | ||
* [[An introduction to equity capital]] | |||
* [[Bond]] | * [[Bond]] | ||
* [[CEPS]] | * [[CEPS]] | ||
Latest revision as of 15:32, 16 November 2022
Bonds which have the right but not the obligation to convert into a specified number of ordinary shares (or other securities) under specified terms and conditions.
This right is an option in favour of the holder / investor.
In return for this additional valuable right, the investor is generally willing to accept a lower rate of interest on the debt.
This saves interest for the issuer / borrower, at the cost of writing the option.
Convertible bonds are also known as Convertibles.
