What Are the Pros and Cons of Convertible Debt?

The advantages and disadvantages of convertible bonds are nouns.

Pros and cons of convertible bonds

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The advantages and disadvantages of convertible bonds are nouns.

1. Low interest costs. Company grant

1 The benefit of lower interest rates will be lost after the conversion

2 If the holder is unwilling to convert the shares, the issuing company will be under pressure to pay debts

3If the share price of the convertible bond is higher than the conversion price when the share is converted, the issue will suffer financing losses

4The provisions of the resale clause may cause losses to the issuing company ^[1]

5 In a bull market, it is more direct to issue stocks for financing than in convertible bonds; in a bear market, if the convertible bonds cannot be forced to convert into shares, the company's debt repayment pressure will be great