I get that its like a call option on the stock, but I see that even for mature companies with little growth opportunities the convertible debt is super cheap.
The rates quoted are actually so low that in real terms, its negative. Is that basically the price of a call option over several years just reflected in the stock, or am I missing something?
ar169, sorry about the lack of response. Maybe one of these topics will help:
I hope those threads give you a bit more insight.
Anyone?
Even if it’s a mature company, the stock price has vol and thus the call option has value. So you can get away with a lower yield.
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