What's more, once a bond issuer's stock price falls well below its conversion value many investors lose interest.
In any case, it's tough to tell as a customer how good the issuer's fraud prevention measures are.
UNLIKE the obligations of firms or individuals, government bonds are backed merely by the issuer's word.
But the swaps also let speculators bet on a debt issuer's default.
The investor need only consider the issuer's creditworthiness, the bond's yield and the bond's maturity date.
The loans underlying covered bonds remain on the issuer's balance sheet.
He sells bonds when his industry or credit-quality outlook changes or an issuer's credit quality weakens.
"The S.E.C. will not tolerate deficient controls surrounding an issuer's financial reporting obligations, including quarterly reporting obligations".
One would explain the issuer's charging rules; the other would list the charges the consumer has actually incurred.
Convertible debt generally is subordinated to the issuer's traditional debt and is often issued by young companies in volatile industries.
If assets are not really being sold to the SPV, they do not move off the issuer's balance-sheet.
