Exchangeable

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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.

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References in periodicals archive ?

133,258,000 class 1E-A2 exchangeable notes 'BBsf'; Outlook Stable;

Fitch Expects to Rate Fannie Mae's Connecticut Ave Securities, Series 2017-C07; Presale Issued

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.

Aabar taps demand for euro 2b exchangeable bond

We build a dataset that includes 104 issues of exchangeable debt by corporate issuers between 1981 and 2001.

When do firms issue exchangeable debt?

5 (b) (v) of the terms and conditions of the Exchangeable Sukuk.

Re: Tamweel Funding Limited: U.S. $300,000,000 Trust Certificates due 2013 Exchangeable into shares of Tamweel PJSC

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.

Exchangeable Shares

The first conclusion of this paper is that firms issue exchangeable debt conditional on having made a decision to divest of an intercorporate holding.

Exchangeable debt

27,147,000 exchangeable class 16A3 'Asf'; Outlook Stable;

Fitch Rates BCAP LLC 2011-RR11 Trust

30,843,000 exchangeable class 1-A-9 'AAA'; Outlook Stable;

Fitch Rates J.P. Morgan Resecuritization Trust 2009-12

26,212,000 exchangeable class 3-A-5 'AAA'; Outlook Stable;

Fitch Rates J.P. Morgan Resecuritization Trust 2009-11

43,602,000 exchangeable class 1-A-12 'AAA'; Outlook Stable;

Fitch Rates Credit Suisse First Boston Mortgage Securities Corp., CSMC Series 2009-13R

33,829,000 exchangeable class 2-A-13 'AAA'; Outlook Stable;

Fitch Rates Credit Suisse First Boston Mortgage Securities Corp., CSMC Series 2009-11R

70,998,000 exchangeable class 3-A-10 'AAA'; Outlook Stable;

Fitch Rates Credit Suisse First Boston Mortgage Securities Corp., CSMC Series 2009-9R