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Convertible Bonds and Conversion Terms

Convertible bond, convertible note, conversion ratio, conversion right, CoCo, ASCOT, and zero-coupon convertible terms.

Convertible bonds and conversion terms describe debt or hybrid securities that can become equity or equity-linked value under stated conditions.

Use this branch when valuation depends on both credit risk and equity optionality.

What This Branch Covers

AreaUse it for
Core Convertible SecuritiesConvertible bonds, convertible notes, convertible securities, and zero-coupon convertibles.
Conversion Rights, Ratios, and Structured ConvertiblesConversion rights, conversion ratios, contingent convertibles, and ASCOT structures.

What to Verify

Check conversion price, conversion ratio, parity, call features, reset provisions, maturity, coupon, seniority, issuer stock price, volatility, dilution, and whether conversion is optional, mandatory, or triggered by conditions.

Common Mistakes

  • Valuing a convertible as only a bond or only an equity option.
  • Ignoring call features that can force a conversion decision.
  • Forgetting dilution and share-count effects.
  • Comparing convertibles without checking conversion mechanics and credit seniority.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Conversion Terms

Conversion ratio, conversion right, contingent convertible, and ASCOT terms used in convertible security analysis.

Convertibles

Convertible bond, convertible note, convertible security, and zero-coupon convertible terms.

Revised on Sunday, June 21, 2026