Definition: What is the bond floor yield-to-worst of a convertible bond? The bond floor yield-to-worst of a convertible bond refers to the minimum yield that an investor can expect to receive if they hold the bond until its worst possible redemption date. It represents the lowest possible return that an investor will receive from the […]

Definition: Assessing the Dilution Risk of a Convertible Bond A convertible bond is a type of bond that can be converted into a predetermined number of shares of the issuing company’s common stock. This feature provides investors with the potential to benefit from any future increase in the company’s stock price. However, investing in convertible […]

Definition: What is the bond floor conversion period of a convertible bond? The bond floor conversion period refers to a specific time frame during which a convertible bond cannot be converted into the underlying equity shares of the issuing company. This period is typically set by the terms and conditions of the bond offering and […]

Detailed Trading Term: Convertible Bonds Definition Convertible bonds are a type of corporate bond that can be converted into a predetermined number of the issuer’s common stock. These bonds offer investors the option to convert their bond holdings into equity shares at a specified conversion price, typically at any time before the bond’s maturity date. […]

Definition: What is a Convertible Bond? A convertible bond is a type of corporate bond that gives the bondholder the option to convert the bond into a predetermined number of the company’s common shares. This unique feature sets convertible bonds apart from traditional bonds, as it provides investors with the potential for both fixed income […]

Convertible Bonds: A Lower Cost Capital-Raising Option Convertible bonds are a unique financial instrument that allows companies to raise capital at a lower cost compared to traditional debt or equity financing options. These bonds are a hybrid security, combining features of both debt and equity instruments. Definition: Convertible bonds are corporate bonds that give bondholders […]

How does the conversion ratio of a convertible bond affect its value? A convertible bond is a type of bond that can be converted into a predetermined number of shares of the issuer’s common stock. The conversion ratio is a key factor that determines the number of shares the bondholder will receive upon conversion. It […]

When should an investor consider selling a convertible bond before maturity? Convertible bonds are unique financial instruments that offer investors the opportunity to convert their bond holdings into a predetermined number of shares of the issuing company’s common stock. While these bonds typically have a fixed maturity date, there may be situations where an investor […]

When should I consider investing in convertible corporate bonds? Convertible corporate bonds are a unique investment instrument that combines the features of both debt and equity securities. These bonds give investors the option to convert their bond holdings into a predetermined number of the issuing company’s common shares. The decision to invest in convertible corporate […]

Convertible Bonds: A Potential Hedge Against Interest Rate Risk Convertible bonds are a type of fixed-income security that offers investors the option to convert the bond into a predetermined number of common shares of the issuing company. These bonds are unique as they combine features of both debt and equity instruments, providing investors with the […]

Definition: What is the conversion premium of a convertible bond? A convertible bond is a type of bond that can be converted into a specific number of shares of the issuing company’s common stock. The conversion premium of a convertible bond refers to the amount by which the bond’s price exceeds the conversion value of […]

Definition: What is the conversion period for a convertible bond? The conversion period for a convertible bond refers to the specific time frame during which the bondholder has the right to convert the bond into a predetermined number of common shares of the issuing company. This period is typically outlined in the terms and conditions […]