What is a Mandatory Convertible Bond?

What is a Mandatory Convertible Bond?

James delves into mandatory convertibles and their unique structure compared to standard convertibles. He dives into Bayer’s issuance in 2016 in part of its financing of acquiring Monsanto.
Overview

Mandatory convertibles differ from regular convertibles as it behaves more like equity than a bond. An issuance of a mandatory shows the company is confident its share price will rise.

Key learning objectives:

  • Understand mandatory convertibles and how they differ from regular convertibles

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Expert
James Eves

James Eves

Career banker with over 25 years working in investment banking. James has worked in many aspects of banking including equity capital markets, origination, IPOs and hybrid capital.

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