Bonds

Convertible Bond

A corporate bond that can be exchanged for a set number of company shares.

In depth

Combines bond income with equity upside. Trades like a bond when stock is far below conversion price; like equity when stock is far above. Popular for growth companies needing financing without diluting shareholders immediately.

Frequently asked about Convertible Bond

What is Convertible Bond?

A corporate bond that can be exchanged for a set number of company shares. Combines bond income with equity upside. Trades like a bond when stock is far below conversion price; like equity when stock is far above. Popular for growth companies needing financing without diluting shareholders immediately.

Why does Convertible Bond matter for investors?

In bonds, Convertible Bond is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Convertible Bond used in practice?

Combines bond income with equity upside. Trades like a bond when stock is far below conversion price; like equity when stock is far above.

Recent news mentioning Convertible Bond

KKR Acquires $820M Samsung SDS Convertible Bonds in AI-Focused Partnership

The Quick Take * KKR will acquire $820M in newly issued Samsung SDS convertible bonds as part of a strategic partnership * No immediate market price movement data available; deal structure uses convertible bonds limiting near-term dilution * No analyst or institutional commentary cited beyond the partnership announcement itself * Samsung SDS will deploy proceeds toward M&A activity and enhancement of its AI capabilities * Deal links US-based KKR capital to South Korean tech/logistics giant

Apr 30, 2026

Related terms

Options

Contracts giving the right (not obligation) to buy or sell an asset at a set price by a set date.

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