What is a Synthetic Convertible Bond?
James speaks on synthetic convertibles and their most common form. He briefly touches on Glencore’s 2018 issuance of $500 million in synthetic convertibles.
Overview
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.
Summary
Expert
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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13:15
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