o Equity perspective on convertibles To take advantage of the upside potential growth of the underlying stock(participation into equity) Swapping the variable stock dividends in return for fixed coupon payments until the earlier of the maturity date and the conversion date o Fixed income perspective on convertibles Provides the bond floor?" value Conversion option that allows the investor to exchange the bond for fixed number of shares Convertible bondsSlide: 3  Equity perspective on convertibles • To take advantage of the upside potential growth of the underlying stock (participation into equity). • Swapping the variable stock dividends in return for fixed coupon payments until the earlier of the maturity date and the conversion date.  Fixed income perspective on convertibles • Provides the “bond floor” value. • Conversion option that allows the investor to exchange the bond for fixed number of shares. Convertible bonds