Mandatory Convertible
A type of convertible bond that has a required conversion or redemption feature. Either on or before a contractual conversion date, the holder must convert the mandatory convertible into the underlying common stock.
These securities provide investors with higher yields to compensate holders for the mandatory conversion structure. Investopedia Says:
These are often used when a traditional equity issuance would otherwise place severe market pressure on the underlying stock. Related Terms:
Busted Convertible Bond
Common Stock
Contingent Convertible
Conversion Price
Conversion Price
Convertible
Convertible Bond
Convertible Preferred Stock
Mandatory Convertible
Structured Yield Product Exchangeable For Stock - STRYPES |