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The so-called corporate bonds with warrants are a hybrid security product between bonds and stocks, which is a combination of bonds and warrants. The holders of the corporate bonds have the right to subscribe for a certain number of corporate stocks at the agreed price (the strike price) within a certain period of time. The issuance of corporate bonds with warrants is the same as the issuance of general warrants, including exercise price, subscription premium, exercise ratio, exercise period and other basic elements.
According to the different treatment methods of the warrants attached to corporate bonds, they can be roughly divided into two types: separated type and non separated type
The main form of the separation type is that although the warrants are distributed to the same investor together with the corporate bonds they are attached to when they are issued, they are listed as two different products at the same time when they are traded. Non separable type means that warrants and corporate bonds cannot be issued and circulated separately, and their duration is the same. They are always integrated.
Seen from the international market situation, the separation type is the main type, and the non separation type is very rare. According to the Administrative Measures, "corporate bonds and warrants in corporate bonds with warrants that meet the listing conditions of the stock exchange shall be listed and traded separately", which has actually been made clear that China's market issues separate corporate bonds with warrants.
Sina statement: The content of this article is purely the author's personal view, only for investors' reference, and does not constitute investment advice. Investors operate accordingly at their own risk.
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