“Convertible securities have been used as financing vehicles for several decades. Corporations are able to issue convertibles at rates lower than comparable straight debt while also selling equity on a deferred basis at a premium to the current market price. Investors are attracted to the hybrid nature of convertible securities. They participate in equity price appreciation with limited downside risk.
Convertibles are interesting and relatively sophisticated securities. The concepts and theories associated with domestic and international convertibles can be difficult to understand. From the standpoint of a broker, a domestic or foreign equity or fixed-income portfolio manager, or an average investor, questions with regard to domestic and international convertible securities are generally quite similar. With this in mind, this book was written using practical examples to ease the learning process.”