ARSENAL > Convertible bond

Convertible bond

Fixed Income
Definition
A corporate bond that can be converted into a fixed number of common shares of the issuer. Combines bond-like downside (coupon + face value) with equity-like upside (conversion).

Issued primarily by growth companies that want cheap debt with equity-like terms. Converts heavily favored buyers in low-rate environments. ETFs: ICVT, CWB.
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