Synthetic convertible

(redirected from Synthetic Convertibles)

Synthetic convertible

Combination of usable bonds and warrants (that expire on or after the bonds' maturity) that resembles convertible bond.

Synthetic Convertible

A bond and a warrant or right that are issued separately, but are combined together to create the same effect as a convertible bond.
References in periodicals archive ?
The funds' flexibility to create synthetic convertibles also enhances the opportunity to achieve the funds' investment objectives.
The funds invest in a combination of instruments, including equity-linked and convertible securities, synthetic convertibles, stocks and fixed income to seek to achieve each fund's investment objective and risk/reward for current market conditions.
The principal risks of investing in the Calamos Growth and Income Fund include: convertible securities risk, synthetic convertible instruments risk, equity securities risk, growth stock risk, small and mid-sized company risk, interest rate risk, credit risk, liquidity risk, high yield risk, forward foreign currency contract risk and portfolio selection risk.
The Fund seeks income and capital appreciation by investing approximately 75% of its total assets in investment grade, fixed-income securities, with the remainder of the Fund's assets invested in convertible and non-convertible debt obligations (including high yield bonds) as well as equity securities and synthetic convertibles.