A compulsory convertible debenture (CCD) is a type of debt instrument that is typically used by companies in need of capital. CCDs are compulsorily converted into equity shares at a predetermined date or event. This type of debenture is generally used by companies that are not able to raise capital through traditional means, such as … Read more
FCDs are debt instruments that can be converted into equity shares of the issuing company at the discretion of the holder. The holder does not have to convert the FCDs into equity shares and can hold the FCDs until they mature. FCDs typically have a longer maturity than other types of convertible securities and offer … Read more
A contingent convertible (CoCo) is a type of bond that can be converted into equity if certain conditions are met. For example, a CoCo bond may be automatically converted into equity if the issuer’s share price falls below a certain level. CoCo bonds are often used by banks as a way to raise capital. This … Read more
A convertible note is a debt instrument that can be converted into equity at the discretion of the holder. The conversion price is typically set at a discount to the current market price of the underlying equity, providing the holder with an incentive to convert. The conversion value definition refers to the price at which … Read more
A “conversion premium” is the premium that the holder of a convertible note receives when they convert their note into equity. The premium is calculated as the difference between the conversion price of the note and the current market price of the equity. For example, if a convertible note has a conversion price of $10 … Read more
A mandatory convertible is a type of convertible security that must be converted into shares of the underlying stock at the maturity date. The conversion is typically at a set ratio, such as 1-to-1. Mandatory convertibles are typically issued by companies that are looking to raise capital but are not able to do so through … Read more
