Synthetic convertible

Synthetic convertible

Combination of usable bonds and warrants (that expire on or after the bonds' maturity) that resembles convertible bond.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Between 2005 and 2009, he worked as an analyst at ADI on various quantitative strategies (credit, equities, convertibles) and then as a portfolio manager of various quantitative funds (equities, synthetic convertible bonds).
Fitch OC tests also capture the fund's use of synthetic convertible securities based on the credit rating of the issuer and put provider, the provisions on put protection and stock delta, and whether underlying stock is trading at an equity-sensitive, typical, or busted conversion premium, similar to a straight convertible position.
To date, most offshore yuan-denominated bonds have been issued in Hong Kong, while several synthetic convertible bonds have been issued in Singapore and are likely to be issued in other international financial centres.