Convertible Bonds

The aim of this session is to explore convertible bonds (“CBs”), and similar securities. We start with terminology and key characteristics, bringing the materials up to date with classic and current deals. We look from the issuers’ perspective, with pros and cons, the impact on capital structure - covering technical points like credit rating agency treatment to valuation issues like the effective cost of capital. We also look to investors, from traditional equity and debt funds, to hedge funds, and their perspectives on risk-reward and hedging.

The full-day class further focuses on one of three strands depending on bankers’ interest:

  • Modeling convertible bonds, including conversion scenarios
  • Case studies of convertible bonds for M&A
  • Valuation of convertible bonds

Read our Technical Update on Convertible Bond Issuance (Aug 2009)

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