Asset Swapped Convertible Option Transaction (ASCOT)
An ASCOT separates a convertible bond's credit component from its equity option, creating distinct fixed-income and option exposures.
Conversion ratio, conversion right, contingent convertible, and ASCOT terms used in convertible security analysis.
Conversion rights, ratios, and structured convertibles define how, when, and into what a convertible security may convert.
Use this branch when the feature design drives upside, downside, dilution, trigger risk, or conversion timing.
| Term | What it clarifies |
|---|---|
| Conversion Price | Contractual price per share used to determine the conversion ratio and potential dilution. |
| Conversion Ratio | Number of shares or units received for each convertible security. |
| Conversion Right | Holder or instrument right to convert under stated conditions. |
| Contingent Convertible Bonds (CoCos) | Convertibles with triggers tied to capital, distress, or other conditions. |
| Asset Swapped Convertible Option Transaction (ASCOT) | A structured convertible-related transaction separating bond and option economics. |
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An ASCOT separates a convertible bond's credit component from its equity option, creating distinct fixed-income and option exposures.
Contingent convertible bonds absorb bank losses through mandatory conversion or principal write-down when specified capital or non-viability triggers occur.
The conversion price is the price per share used to determine how many shares a convertible security delivers on conversion.