Tell Me About Convertible Bonds - Business, Finances and Investing Forum

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Tell Me About Convertible Bonds

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01-24-2008 , 07:13 AM

makaveli001

journeyman

Join Date: Feb 2006 Posts: 268

I am interested in learning about convertible bonds... in layman's terms. I am particularly interested in their risk and downsides associated with them from an investor's standpoint in a start-up company. I have done some quick searches, but much of the information is above my head and I am trying to evaluate an investment opportunity.

Thanks in advance.

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01-24-2008 , 08:48 AM

Yowserrrs

Pooh-Bah

Join Date: Nov 2007 Posts: 5,347

Commissions are higher and they are less liquid so you are more stuck. Two important things are the credit rating and reason why company is issuing convertible debt.

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01-24-2008 , 09:19 AM

DcifrThs

Chip Spewer

Join Date: Aug 2003 Posts: 15,812

Quote:

Originally Posted by Yowserrrs

Commissions are higher and they are less liquid so you are more stuck. Two important things are the credit rating and reason why company is issuing convertible debt.

and the structure, or the "covenants" agreed upon for the issue.

Barron

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