Convertible Bonds
A convertible bond is a debt bond that allows interest payments to take place but can be converted into a predetermined number of ordinary shares or stocks.
Brunswick Funds are established by group of professionals to serve high networh individuals and corporates in Canada and now serving over 24 countries stock echanges and more than 100 private funds/family offices worldwide.
A convertible bond is a debt bond that allows interest payments to take place but can be converted into a predetermined number of ordinary shares or stocks.
A convertible bond is a debt bond that allows interest payments to take place but can be converted into a predetermined number of ordinary shares or stocks.
These are securities issued by the partnership that gives the right to convert the issuer into shares that the partnership will issue by raising capital and shares of the issuer that are provided by the principles set out in the circular. The maturity of HDTS can not be less than 1 year. Conversion of HDTS to shares can be carried out no earlier than 1 year after the due date.
HDT are fixed income securities that give the owner the right to convert the bond in his possession into a predetermined amount of shares. HDTS appeals to investors who see fit to take advantage of the high earning potential provided by the stock market, but do not want to take on the risk posed by stock price volatility. The most important feature of HDTS is that it gives the investor a combination of the principal guarantee to be obtained at the end of the maturity of the bonds and the capital gain provided by the shares when converted. dec. Companies that issue HDTS, on the other hand, because the right to convert along with fixed income is also granted to investors, gain flexibility in pricing and can provide funds at a low cost.
Because the interest rate contained in the HDT can be converted into shares, it can be determined as lower compared to bonds. The reason why investors agree to a lower interest rate is the potential increase in the value of the shares of the issuing partnership.