In today’s briefing:
- Although the Cost of Capital for CBs Should Be Considered Much Higher than for SBs
Although the Cost of Capital for CBs Should Be Considered Much Higher than for SBs
- We need to watch carefully to see whether cash flow will subsequently increase in the projects that the CB issuers have invested their proceeds in.
- Share prices of companies that announce equity financings, including CBs, usually decline. Besides the dilution, another aspect is the effect of the company’s announcement of the sale of its shares.
- In the case of CBs, the company should keep in mind that it sold the conversion rights of its shares for less than their actual call option value.
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