Investitionen und Emissionen von Convertible Bonds (Wandelanleihen)

Thomas Heidorn and Mirko Gerhold

No 50, Frankfurt School - Working Paper Series from Frankfurt School of Finance and Management

Abstract: Convertible bond issues increase considerably since 1990. The paper shows that these issues are more than just the combination of a bond and an option. The pricing depends on the share price, the shares volatility, the interest rate, and the interest volatility , the credit spread, and the correlation among them. Convertibles are especially helpful for non rated or low rated companies. The information asymmetry between management and investor can be considerably reduced compared to bond or share issues.

Keywords: hybrids; convertible arbitrage; hedge fonds; issue of convertibles; investing in convertibles (search for similar items in EconPapers)
JEL-codes: G12 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (70)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:fsfmwp:50

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