Discussion Post Derivatives

Hughe037

 

In Module 5, we discuss the merging of debt and options. In addition to companies offering convertible bonds, they also offer other bonds linked to options or equity-linked notes. Assume you are a portfolio/risk manager and your company just issued one such instrument bond linked to options from the list below. Explain why you included the instrument in your portfolio.

  • Debt Exchangeable for Common Stock (DECS)
  • Premium Equity Participating Share (PEPS)
  • Preferred Equity Redeemable for Common Stock (PERCS)
    • 10 years ago
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