The issuer of such a security reserves the right to redeem the issue by delivering shares under precisely defined conditions. – In contrast to the usual fixed-interest bearing securities, reverse convertible bonds have a higher nominal interest rate. This is because, while investors in fixed-interest securities receive 100 percent of their invested capital back at maturity, this is not necessarily the case with reverse convertibles. This is because it is possible that the underlying value – i.e. the share price – may be lower than the subscription price when the bond matures. – See equity options, bond, structured, discount certificate, death spiral, convertible bond, certificate.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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