A convertible bond is a type of fixed income security sold by public companies that can be converted into common shares of the issuing company’s stock. Convertible bonds work just like ordinary ...

Companies can raise money to run their businesses in many ways. Sometimes a company will raise equity. When they raise equity, they sell a portion of the business to a new partner or issue shares to ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Many investors need growth in their portfolios but are wary of stocks because of their volatility – and memories of last year’s losses. With rising interest rates they may be pleased with the current ...

Investors looking for income from traditional bonds were out of luck in 2020, as these generally provided returns of around 1% to 2%, or less. This led some investors to consider “convertible bonds,” ...

Convertible arbitrage exploits mispricings between convertible bonds and their underlying equity, offering market-neutral returns with low correlation to broader markets. A passive, static portfolio ...

Management has now said that the convertible bondholders have asked about exercising their options, implying up to 20% dilution is on the table. I am not as concerned about it; a lot of it should ...

Stocks and bonds are two of the most popular investments. Stocks cater to investors who want to pursue higher potential returns, while bonds appeal to investors who want stable income and less risk.