Convertible Bonds: This Is What Potential Investors Should Pay Attention To

Convertible bonds are not the same as reverse bonds, but what are their special features and how do they differ from other bonds? Are there any advantages over normal bonds?

A convertible bond is a security that pays a fixed interest rate but, unlike other bonds, can be converted into shares at the end of the term. In this case, the owner of the share bond has the right. It is up to him whether he ultimately decides to pay out in capital or to pay out in shares.