O'Reilly logo

The Handbook of Fixed Income Securities, Eighth Edition, 8th Edition by Steven V. Mann, Frank J. Fabozzi

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTERFOURTEENCONVERTIBLE SECURITIES AND THEIR INVESTMENT APPLICATION

JONATHAN L. HORNE

Executive Vice PresidentPacific Investment Management Company

CHRIS P. DIALYNASManaging DirectorPacific Investment Management Company

A convertible bond is a debt security that allows the holder to convert to a given number of shares of a company’s equity. This convertibility to equity means that the holder of a convertible bond will profit from a significant increase in the firm’s stock price while being protected against lower stock prices through his debt claim. In this chapter we will first discuss some key terms and the basic features of convertible bonds, and then describe the motivations for issuing these securities and the key portfolio management ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required