Premium Put Convertible

A convertible bond with an additional put feature that allows it to be redeemed at a premium sometime during its life.

Similar to a regular put option, the issuer of the premium put convertible bond has an obligation to buy back the bond upon the discretion of the bondholder. Thus, the put option attached to this convertible bond allows it to be redeemed at a premium by the bondholder anytime before maturity.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Convertible bond — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • premium — consideration paid for an insurance policy. Glossary of Business Terms (1) The additional payment allowed by exchange regulation for delivery of higher than required standards or grades of a commodity against a futures contract. (2) In speaking… …   Financial and business terms

  • Premium — (1) Amount paid for a bond above the par value. (2) The price of an option contract; also, in futures trading, the amount the futures price exceeds the price of the spot commodity. Related: inverted market premium payback period. Also called… …   Financial and business terms

  • Reverse convertible securities — Reverse convertible security or reverse convertible is a short term note linked to an underlying stock. The security offers steady stream of income due to the payment of a high coupon rate. At maturity, the investor will receive either 100% of… …   Wikipedia

  • Dividend Enhanced Convertible Stock - DECS — Preferred stock that provides the holder with premium dividends in addition to an embedded short put option and a long call on the issuing company s stock. Dividend enhanced convertible stocks provide the holder with the right to convert the… …   Investment dictionary

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • Bond (finance) — In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) to use and/or to repay the principal at a later date, termed maturity.… …   Wikipedia

  • Chevrolet Impala — 1958 Chevrolet Impala Coupe Manufacturer Chevrolet Division of General Motors Production …   Wikipedia

  • Chevrolet Camaro (fifth generation) — This article is about the fifth generation Chevrolet Camaro. For general Camaro information, see Chevrolet Camaro. Chevrolet Camaro (fifth generation) Manufacturer Chevrolet and Holden Produc …   Wikipedia

  • Arbitrage — For the upcoming film, see Arbitrage (film). Not to be confused with Arbitration. In economics and finance, arbitrage (IPA: /ˈɑrbɨtrɑːʒ/) is the practice of taking advantage of a price difference between two or more markets: striking a… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.