Handbook of Hybrid Instruments: Convertible Bonds, Preferred Shares, Lyons, ELKS, DECS and other Mandatory Convertible Notes

List of Contributors

About the Contributers

Introduction

1.1 General

1.2 Importance of Adequate Analysis

1.3 Description of the Chapters

1.4 Summary

1 Hybrid Instruments: Advantages and Disadvantages, Badari S. Ewar

1.1 Introduction

1.2 What is a Convertible Bond?

1.3 The Issuer

1.4 The Investor

1.5 Terminology

1.6 Convertible Instruments

1.7 Summary

2 Convertible Structures: Evolution Continues, T. Anne Coxe

2.1 Convertible Bonds and Preferreds: Hybrid Vigor

2.2 LYONs: A Breed Apart

2.3 TOPrS: Preferreds made Better

2.4 MIPS: Predecessor to TOPrS

2.5 PERCS and Their Relatives

2.6 PRIDES: Equity for Income Lovers

2.7 Variations on a Theme: Product Innovations Abound

2.8 Convertible Glossary

3 The Life Cycle of Convertibles and Warrants, William T. Moore

3.1 Issuance of Warrants and Convertibles

3.2 Calling Convertibles and Warrants

3.3 When should Warrants and Convertibles be Called?

3.4 What Happens to Firm Value when Firm Force Conversion or Exercise?

3.5 Assessing the Value of the Call Provision in Theoretical Models

3.6 References

4 Derivative Data, John Poignand

4.1 Introduction

4.2 Section One: The Convertible Bond and Convertible Preferred

4.3 Section Two: Conversion and Related Data

4.4 Section Three: Calculated Data

5 The Value Line Experience with Convertibles, Lawrence Cavanagh

5.1 Value Line's Convertible Indexes and Market Profiles

5.2 The Performance of Value Line's Recommended Convertibles

5.3 Summary

5.4 Endnotes

6 Hybrid Instruments: A Tax Planning Synopsis, Linda E. Carlisle

6.1 Fundamental Economic Characteristics of the Instruments

6.2 Three Forms of Transaction

6.3 Objectives

6.4 Open Issues

6.5 Conclusions

7 Mandatory Convertible Reset Structures, Colum McCoole

7.1 Introduction

7.2 Origins of the Japanese Bank Reset Market

7.3 Glossary of Key Terms

7.4 Mechanics of the Reset

7.5 Valuing Mandatory Convertible Resets

7.6 Evolving into an Equity Proxy

7.7 Trading Behavior of Mandatory Reset Structures

7.8 Negative gamma Becoming Part of the Vocabulary

7.9 Conclusions

7.10 Appendix

8 Japanese Reset Convertible Bonds and Other Advanced Issues in Convertible Bonds, Izzy Nelken

8.1 Introduction

8.2 The Reset Feature

8.3 Modeling of Reset Convertibles

8.4 Two More Interesting Points to Related to Convertible Securities

9 A Dictionary of Terms Related to Hybrid Instruments, Gary Gastineau and Mark Kritzman

Appendix: ConvB CD ROM Installation Guide

Index