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Cloud 9fin

Preaching to the unconverted

Apr 13, 2023
18:15
Snipd AI
Convertible bonds, a hybrid debt-equity investment, are making a comeback. They offer attractive financing for tech companies. Rising interest rates impact the growth stock market. Convertible debt affects credit profiles and some companies buy back discounted securities. Regular corporate convertibles are preferred over bank convertibles for their features. The hosts express gratitude to the guest for their insights.
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Podcast summary created with Snipd AI

Quick takeaways

  • Convertible bonds can be a hybrid form of debt and equity, offering the option to convert into shares.
  • Convertible bond issuance is on the rise, with companies taking advantage of favorable market conditions and strengthening their financial position.

Deep dives

What is a convertible bond?

A convertible bond is a fixed income instrument that pays a coupon and has a maturity, but can also be converted into a fixed number of shares. The investor can choose to be repaid at par or receive the value of the conversion value, which may be higher than par.

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