Convertible Bonds Explained: Coupon, Premium, Dilution
What is a convertible bond? Coupon savings, conversion premium, dilution risk, and how hedge funds run convertible arbitrage — with real examples.
What is a convertible bond? Coupon savings, conversion premium, dilution risk, and how hedge funds run convertible arbitrage — with real examples.
US convertible bond pricings ran 43% above 2025’s H1 pace through mid-June, with Ciena, Akamai, and ON Semi tapping the market at zero coupons.
How convertible bonds work: conversion ratio, conversion premium, the bond floor, convertible arbitrage, and the four main types of converts.
Learn how convertible bonds work — coupon, conversion ratio, bond floor, and conversion premium — with plain-English examples and a verified worked illustration.