Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
FYI: Convertible bonds offer access to two otherwise separate security markets. They start out as corporate bonds, which are debt instruments that carry the normal attributes of bond offerings: protection of principal, income generation and favorable position in a bankruptcy situation. If certain criteria are met, the holder of the bond may convert the corporate bonds into common stock of the issuing company. This allows investors flexibility in terms of equity appreciation or an escape from interest rate risk.
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