银洛希尔年月可转换债券交易品种的培训材料.ppt

《银洛希尔年月可转换债券交易品种的培训材料.ppt》由会员上传分享，免费在线阅读，更多相关内容在应用文档-天天文库。

1、18OCTOBER2004ConvertiblebondsPresentationtoAgendaOVERVIEWWhatareconvertiblebonds?ConvertiblebondstructuresExchangeablebondsEquity-linkedmarketconditionsArbitragetechniques2Whatareconvertiblebonds?ConvertiblebondsarehybridproductsWhatisaconvertiblebond?Convertibl

2、ebondsarehybridinstrumentsthatstandsomewherebetweenadebtinstrumentandequityConvertibleiseffectivelyabondwhichgivesitsholderstherighttoconvertforafixednumberofordinarysharesatafixedpriceBondholdersreceive:Atmaturity,ifnotpreviouslyconverted,convertiblesareworth:T

3、hegreateroftheircashredemptionvalueandThemarketvalueofthesharesintowhichthebondsareconvertibleFixedyieldtomaturity/yieldtoputCouponyieldwhereissuepricediffersfromredemptionorputprice…….orinexchangeforcancellingtheBonds……..BondFixednumberofsharesatafixedpriceSha

4、res4Trade-offofoptionvaluevsbondvalueConvertiblebonds-thecomponentsConversionpremiumVolatilityMaturityCallstructureDividendsInterestratesOptionValue5-15%BondValue85-95%Maturity/PutInterestratesCreditspreadCouponRedemptionpriceHigheryieldHigherconversionpremium

5、Moredebt-likeLoweryieldLowerconversionpremiumMoreequity-like5Optionvaluationdrivers6Optionvaluationdrivers(cont’d)7Bondvaluationdrivers8Bondvaluationdrivers(cont’d)9ConvertiblefinancingoffersissuersanumberofadvantagesAdvantagesofconvertiblebondsLowcostdebtOption

6、valueallowsIssuerstoachievesub-marketinterestrateBenefitsenhancedbyprevailinginterestrateenvironmentContingentequitysaleatapremiumEquityraisedatapremiumtoprevailingsharepriceNoimmediateEPSdilution-butimpactsfullydilutedRapidissuance2-4weekspreparation(subjecttor

7、egulatoryapprovalprocess)PossibletoissuemorerapidlywithdelayedsettlementAcceleratedmarketingover1/2to1dayDemandsonmanagementLow;NoinvestorroadshowsFlexibilityVersatileproductcanbetailoredtoissuer’sneeds10DisadvantagesofconvertiblebondsDebtorequity?Debtonbalances

8、heetuntilconversionIssuerdoesnotcontrolconversionCostultimatelydependentonsharepricedevelopmentEquityimpactSharepriceusuallyfallsuponannouncementswitchingbyinvestorsf