Reverse Convertible Note - RCN

What does it Mean? A synthetic instrument that shares characteristics with both bonds and stocks. Reverse convertible notes provide high coupon payments and final payoffs that depend on the equity markets.
Investopedia Says... RCNs have a face value that matures as shares or cash upon the discretion of the issuer, and a fixed coupon rate based on bonds. This allows investors to optimize the diversification of their portfolios without necessarily buying both types of products.

Terms Related Links

Bond
Convertible
Security
Synthetic

Terms Related Links
Reverse Convertibles Can Turn The Tide On Investor Returns - When stocks are stagant and fixed-income yields are crumbling, RCNs come to the rescue!

What is the difference between convertible and reverse convertible bonds?

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