4min chapter

Forward Guidance cover image

Convertible Bonds: The Everything Asset Class | Paul Latronica

Forward Guidance

CHAPTER

Convertible Bonds Are Attractive for Investors

Convertible bonds are attractive for investors, but unattractive for issuers. Fixed-income investors like to lend against collateral; they don't want to delute their equity. A company that is losing hundreds of million dollars a year would not be selling convertible bond. Convertibles have been innovated over the years with no bankers structuring all different types of vehicles.

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