Exchangeable bonds in focus as vol hits stocks

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By Aidan Gregory
02 Jul 2020

Exchangeable bonds are emerging as a key coronavirus tool for corporates — one they can use to monetise stakes in companies they own without having to concede large discounts by selling shares.

Over the past few weeks, numerous European corporates have used the structure, where investors take credit risk in an issuer; but unlike a normal convertible, the bonds will convert into stock in another company if that company’s share price rises above an agreed level.

Exchangeable bonds are often ...

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