1, different issuers
Convertible bonds refer to bonds that bondholders convert into common shares of the company at the agreed price at the time of issuance. It is not difficult to see that the issuer is the listed company itself, and the exchangeable bond refers to the corporate bond issued by the shareholders of the listed company who mortgage their shares to the custodian, and the issuer is the shareholder of the listed company.
2. The impact on the share capital is different.
Convertible bonds will increase the total number of shares in the company, thus reducing the earnings per share. The total share capital of convertible bonds is different, so the yield per share remains unchanged.
3. The time limit for conversion into stocks is different.
Convertible bonds generally take six months to convert into shares, and the conversion time of convertible bonds is longer, generally twelve months.
4. The stock price is determined in different ways.
When convertible bonds are converted into shares, the price is not equal to the average stock price in the 20 trading days before the announcement and the average stock price in the previous trading day, while when convertible bonds are converted into shares, the price is not equal to 90% of the average stock price in the 30 trading days before the announcement.
5. The guarantee methods are different.
Convertible bonds are guarantees exchanged by holding shares of listed companies, and convertible bonds need a third party as a guarantor.
6. The stock sources after conversion are different.
The stocks converted into convertible bonds are the stocks of other companies, and the stocks converted into convertible bonds are the stocks issued by the issuer in the future.
7. The purpose of issuance is different.
Convertible bonds are generally used for investment projects, while exchangeable bonds are not necessarily used for investment projects, but can be used for current asset management and market value management.
Risk disclosure: This information does not constitute any investment advice. Investors should not substitute such information for their independent judgment, or make decisions only based on such information. It does not constitute any trading operation and does not guarantee any income. If you operate by yourself, please pay attention to position control and risk control.