Convertible bonds represent a debt of the issuing corporation and are commonly designated by the rate of interest paid and the year of maturity. The price at which a convertible is traded is quoted as a percentage of $1,000 (or
In most cases, convertible preferred stocks are similar to convertible bonds and respond accordingly in the market place. However, there are some differences between the two.In most instances, a preferred stock is a perpetual instrument and, as such, does not
Convertibles are a niche investment that are, unfortunately, on the outskirts of most investors’ radar screens. A quick primer, however, might help change that.