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Mandatory Convertible

外汇网2021-06-19 20:55:20 103

A type of convertible bond that has a required conversion or redemption feature. Either on or before a contractual conversion date, the holder must convert the mandatory convertible into the underlying common stock.

These securities provide investors with higher yields to compensate holders for the mandatory conversion structure.

|||These are often used when a traditional equity issuance would otherwise place severe market pssure on the underlying stock.

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