August 2005

Synthetics: Minor innovation, major change


Investors in convertibles could benefit from synthetic convertible bonds being made more accessible


By jointly placing a synthetic convertible with another bank, SG has hit upon a relatively simple way to widen substantially the appeal of the product.

Synthetic convertibles are convertibles issued by a bank that convert into shares of another company.

Although they could help convertibles investors suffering from the 18-month dearth of new issuance, the promise of synthetic convertibles has...


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