Convertible stock is a financial instrument that combines characteristics of both stocks and bonds. Essentially, convertible stock is a type of preferred stock that can be converted into a predetermined number of common shares.
What are convertible securities?
Convertible securities are financial instruments, typically bonds or preferred stocks, that can be converted into a predetermined number of common shares of the issuing company. They offer investors the potential for capital appreciation through conversion into equity, though you don't necessarily have to do the conversion if you don't want to.
How did the convertible market perform in 2023?
While issuers continued to access the convertible market to raise growth financing (CapEx, acquisitions, etc.), the primary driver of volumes in 2023 was issuers utilizing the convertible market to refinance convertible and straight debt maturities.
