Intermediate
Conversion ratios parity and conversion premiums
Conversion value translates a convertible into the shares it can deliver. Conversion premium measures what you pay above that share value, not a guaranteed future profit.
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Hybrid Securities Trading Guide
Understand securities that combine features of debt, equity and derivatives. Follow eight stages covering preferred shares, convertibles, corporate hybrids, bank capital and structured notes.
Start with What makes a security a hybrid, then follow the next lesson links. Explore 32 lessons with worked examples, exercises and further reading.
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Convertible Bonds and Equity Links · All lessons
Convertible Bonds and Equity Links
Calculate conversion value and study how equity participation changes the investment.
Intermediate
Why a convertible bond is more than a bond plus upside
The bond component and conversion feature interact with credit, equity and contract terms. A theoretical bond floor is a valuation estimate, not a guaranteed minimum trading...
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Intermediate
Voluntary mandatory and exchangeable conversion
Conversion can be the holder choice, an automatic event or a delivery of shares in another company. These distinctions change the payoff and the risks that...
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Intermediate
Conversion adjustments and shareholder dilution
Conversion adjustments may preserve a defined economic relationship after corporate actions. They do not eliminate every source of dilution or protect an investor from business losses.
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