SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : John Pitera's Market Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mark Adams who wrote (5112)11/16/2001 5:33:54 PM
From: John Pitera  Read Replies (1) of 33421
 
Hi Mark, I don't think one would normally the bond early. However you might have to if you were short the
underlying common stock and their was a stock squeeze and you had no choice but to convert and cover
your short common stock position.

Theoretically, the common stock could be doing a spin-off, or a large cash dividend that one would not
participate in if they were holding the convertible bond, or someone might have tax considerations or
need to vote the common stocks proxy for some reason, but the odds of any of these applying should be
very small.

Obviously some convertibles have call provisions and the company will call in the bond and retire it, when it
starts to get too big of a conversion premium.

I'm not a convert expert, by any means, I wrote the original post on this topic to Patrick S, who's invested in
convertible bonds previously..... He's loaded so he gets to deal with all of these arcane financial products -vbg-

John
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News