Exchangeable


Also found in: Dictionary, Thesaurus, Medical, Legal, Idioms, Encyclopedia, Wikipedia.
Related to Exchangeable: Exchangeable bond

Exchangeable

Applies mainly to convertible securities. Means the issuer, if so stated, may substitute a convertible debenture for an existing convertible preferred with identical terms. Most often used when a corporation has an immediate need for equity capital and a low tax rate, and expects either or both conditions to change. This would make the debenture less attractive if the interest tax-deductibility is lost.

Convertible

A bond or preferred stock that may be exchanged for common stock in the company issuing the convertible at a certain ratio and/or a certain price. A convertible security gives the holder a great deal of flexibility. It reduces risk by guaranteeing a coupon payment or dividend while also allowing the holder to take advantage of a potential, larger return through the ability to convert the security. See also: Convertible option.
References in periodicals archive ?
133,258,000 class 1E-A2 exchangeable notes 'BBsf'; Outlook Stable;
The Aabar bond transaction has already claimed several records: It is the largest exchangeable bond ever issued by an unrated entity, the largest exchangeable bond issue in EMEA since 2008 (Deutsche Telekom); and the seven-year tranche is the largest maturity for an exchangeable bond since 2006.
We build a dataset that includes 104 issues of exchangeable debt by corporate issuers between 1981 and 2001.
Deferred income plans, such as registered pension plans, registered retirement savings plans, registered retirement income funds and deferred profit sharing plans, are able to exclude the exchangeable shares from inclusion in the 20% "foreign property" limits, provided that the exchangeable shares are listed on a stock exchange that is prescribed for Canadian tax purposes.
The first conclusion of this paper is that firms issue exchangeable debt conditional on having made a decision to divest of an intercorporate holding.
27,147,000 exchangeable class 16A3 'Asf'; Outlook Stable;
30,843,000 exchangeable class 1-A-9 'AAA'; Outlook Stable;
26,212,000 exchangeable class 3-A-5 'AAA'; Outlook Stable;
43,602,000 exchangeable class 1-A-12 'AAA'; Outlook Stable;
33,829,000 exchangeable class 2-A-13 'AAA'; Outlook Stable;
70,998,000 exchangeable class 3-A-10 'AAA'; Outlook Stable;