What Makes Convertible Bonds Popular?

Convertible bonds offer a remarkable compromise between debt and equity financing. By offering a lower cost of debt, they provide a benefit to companies, while investors are drawn to the potential upside. These notes are especially popular for growth companies and high volatility situations. In this video from Kaplan’s Financial Management Network,* Josh Schaeffer discusses the features of convertible bonds, some of their uses, accounting principles, and examples of successful usages of these financing instruments. Watch the video here:

What Makes Convertible Bonds Popular

* The video content and production was created by Athina Koutsoumadi, content manager and producer for the Financial Management Network (FMN) offered by Kaplan Financial Education.  FMN is a subscription based program that offers four monthly CPE & CPD accredited segments on hot topics, geared towards C-suite executives of Fortune 500 companies.  For more information visit