Fixed Rate Bond Make-Whole Calculation and Manifest Errors
In the first part of this two part series, Mark talked about the way a calculation agent helps the issuer of a convertible to deal with anti-dilution adjustments and settlement calculations. In this video he talks about the two examples of situations in which he as a calculation agent, help issuers deal with complex calculations on their transactions.
Overview
The role of a good calculation agent is much more than typing numbers into a calculator to find the result of a formula. The role requires a thorough understanding of the transaction documents, the market activities that affect transactions, the hedging of transactions, and the processes – both formal and informal – that are needed to make the transaction work and to know how to help the issuer manage all of these items.
Key learning objectives:
How does the formula work for fixed rate bonds which include make-whole calls at the time they are called for redemption?
How is an issuance error corrected?
Summary
Expert
Mark Dalton
Mark Dalton was an investment banker for 15 years, starting out in Toronto working for BMO Capital Markets, before moving to London to do a Masters in Finance at London Business School. He then spent 11 years at UBS, where he was involved in structuring, documenting, and executing tens of billions of convertible bond and strategic equity derivatives transactions. Currently, Mark is the Managing Director and Founder of ConvEx, a leading independent calculation agent in EMEA.
