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CBO

It stands for convertible bond option; an option that gives the holder of a convertible bond for shares of common…

Convertible

An instrument (part debt and part equity) that gives the holder the right, but not the obligation, to exchange a...

Preference Equity Redemption Cumulative Stock (PERCS)

An equity derivative (specifically an equity buy-write structure) that involves a mandatory conversion preferred stock (it resembles both convertible bonds…

Convertible Hedge

An arbitrage strategy that is based on buying a convertible security (like convertible bonds) and simultaneously selling short the issuing…

Clean Price of a Convertible

The price of a convertible as quoted exclusive of accrued interest. That is, the accrued coupon is not not part…

Busted Convertible Bond

A convertible bond (CB) whose value is pulled down by a declining stock (its potential equity participation). In other words, the…

Death Spiral Debt

A type of convertible bond that can result in the creation of ever-increasing amounts of stock shares, driving the respective...

Par Value of a Convertible Bond

The unit size of a convertible bond. It is amount for which a bond can be redeemed at maturity. It…

MSCB

It stands for moving strike convrtible bond; in Japan, it is a convertible bond in which the conversion price is…

Latent Call Option

An option (latent option) that gives the issuer of a convertible bond or convertible preferred stock the right to redeem…