Exchangeable bond

Special form of convertible bond. In the case of a convertible bond, the investor is granted the right to exchange it for shares in the issuer at a fixed ratio. In the case of a convertible bond – also known as an exchangeable bond – on the other hand, the issuer grants the investor the right at maturity of the bond to exchange the security for shares in another stock corporation – usually affiliated companies – at a fixed ratio instead of cash payment (bonds issued by a company that may be redeemed at the request of their holders into shares of a company other than the issuer of the bonds or in cash). – See bond, parity, pay-in-kind bond, death spiral, convertible premium, mandatory convertible bond.

Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/