A convertible that is a debt instrument embedded with a feature of conversion into equity. Debt-like convertibles are classified as capital instruments (for banks and financial institutions) which constitute part of core capital. The purpose of a bank’s core capital is to absorb unexpected losses and maintain the solvency of the bank so that it continues operating (business as usual).
Debt-like convertibles come in the form of debt-like convertible bonds and debt-like convertible notes (collectively, debt-like convertible securities).
