Derivatives
Linear Credit Default Swap
January 25, 2022
Finance
YEN
January 25, 2022

A type of mandatory convertible preferred which is typically issued at a zero premium and a preset cap on capital appreciated (upside potential), i.e., limited upside participation. However, this note produces an enhanced yield in comparison with similar notes or bonds. The note will automatically convert into a given number of shares (usually one) after the passage of a preset period of time.

It is known for short as YEN.

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