What is a Synthetic Convertible Bond?
James Eves
30 years: Equity capital markets
James speaks on synthetic convertibles and their most common form. He briefly touches on Glencore’s 2018 issuance of $500 million in synthetic convertibles.
James speaks on synthetic convertibles and their most common form. He briefly touches on Glencore’s 2018 issuance of $500 million in synthetic convertibles.
What is a Synthetic Convertible Bond?
2 mins 50 secs
An instrument where the issuer has sold a convertible bond in the equity-linked market and bought a matching call option from one or more banks. The result is, the issuer is left with a simple profile of straight debt.
Key learning objectives:
Define a Synthetic Convertible
Describe how an issuer can hedge its exposure using options
Explain why issuers hedge, and give an example of this.
James Eves
06:01
13:15
03:00
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