BUSTED CONVERTIBLE
busted convertible: translation
A convertible bond trading so far below its conversion value that it trades on investment value alone, meaning it has value only as a bond. It has essentially no equity value. American Banker Glossary
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Related: fixed income equivalent. Mainly applies to convertible securities ( convertible security). convertible bond selling essentially as a straight bond. Assuming the issuer is "money good," or will continue to meet credit obligations, such issues can be highly attractive since the price makes virtually no allowance for the bond's call on the common stock, when most such issues usually carry premiums. Bloomberg Financial Dictionary
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A convertible issue of little value because the underlying stock has fallen below the conversion price.
► See Convertible Bond, Convertible Preference Share.