Floorless Preferred Stock/Debenture Message Board

STOCKTALK

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 : Floorless Preferred Stock/Debenture

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: TH who wrote (436)	6/5/1999 4:03:00 PM
From: RockyBalboa	of 1438

Finally, as some others posted the objective of the funds are to get investments with annualized returns of north of 20% - regardless of the stock price. There are some rare blackouts (ie company dies, convertible holders get whats left from company....) or even litigations when companies refuse to issue shares to the convertible holders. Shit happens, and thats what we call "credit risk" as the transactions are financing transactions from their original meaning, not investment activities. But note, with a construction having a cushion to the north (note that there are warrants issued in connection with the debenture), and a vehicle which turns into stock at a price you self determine, also with a cap/ceiling, how are the odds to lose? Nil, IMO (except other risks...) The nasdaq made the futile effort to regulate the convertibles but made life more difficult. Smaller transactions, and established floor prices (in new issues) lead to even more dilutive or impairing constructions because.... the market (for convertibles) demands yield, nothing else.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next