Convexity ratio o Classic"two-thirds upside, one-third downside o Convexity ratio is the ratio of upside and downside participation For example, suppose the convertible provides 64% of the upside participation with only 34% of the downside movement then the convexity ratio is 1. 85. That is, the convertible provides 85%o more upside participation than downside risk Convertible bondsSlide: 6  Classic “two-thirds upside, one-third downside”  Convexity ratio is the ratio of upside and downside participation. For example, suppose the convertible provides 64% of the upside participation with only 34% of the downside movement, then the convexity ratio is 1.85. That is, the convertible provides 85% more upside participation than downside risk. Convertible bonds