The International Handbook of Convertible Securities,9780814404379

The International Handbook of Convertible Securities

by ; ;
ISBN13: 9780814404379
ISBN10: 0814404375
Format: Hardcover
Pub. Date: 1999-04-01
Publisher(s): Amacom Books
List Price: $80.25

Rent Book

Select for Price
Add to Cart
There was a problem. Please try again later.

New Book

We're Sorry
Sold Out

Used Book

We're Sorry
Sold Out

eBook

We're Sorry
Not Available

Buy from our Marketplace starting at $118.59

How Marketplace Works:

  • This item is offered by an independent seller and not shipped from our warehouse
  • Item details like edition and cover design may differ from our description; see seller's comments before ordering.
  • Sellers much confirm and ship within two business days; otherwise, the order will be cancelled and refunded.
  • Marketplace purchases cannot be returned to eCampus.com. Contact the seller directly for inquiries; if no response within two days, contact customer service.
  • Additional shipping costs apply to Marketplace purchases. Review shipping costs at checkout.

Summary

- Aimed at all investors seeking exceptional risk-adjusted returns in the financial markets

Author Biography

Thomas C. Noddings is Founder and Chairman of Noddings Investment Group. A nationally recognized expert in convertibles and listed options, Tom has been on the leading edge of the convertible markets for nearly three decades. Susan C. Christoph is President and Managing Director of Noddings Investment Group. Her primary responsibility is portfolio management specializing in neutrally hedged convertible securities or convertible arbitrage. John G. Noddings is Director and Managing Director of Noddings Investment Group. His primary responsibilities include enhancing the firm's proprietary research capabilities as well as the day-to-day management of the firm.

Table of Contents

Acknowledgments v
List of Tables
xv
List of Graphs
xix
Introduction 1(252)
The Convertible Securities Market
2(1)
An Overview of the Handbook
2(1)
Convertibles: Asset Class or Alternative Investments
3(2)
Convertibles as an Asset Class
3(1)
Convertibles Sub-Asset Classes as Alternative Investments
4(1)
Convertible Hedging Strategies as Alternative Investments
4(1)
Market Capitalization
5(4)
SECTION I EQUITY WARRANTS
The U.S. Warrant Universe
9(16)
Background
9(1)
Warrant Opportunities for Today's Investors
10(2)
Information Sources
12(1)
Companies Having Actively Traded Warrants
12(1)
Company Profile Analysis
13(1)
The Typical Warrant's Underlying Common Stock
14(11)
Warrant Terms and Special Provisions
25(8)
Background
25(1)
Basic Warrant Terms
25(2)
Conversion ratio
25(1)
Exercise price
26(1)
Expiration date
26(1)
Dilution protection
26(1)
Special Provisions
27(3)
Exercise price increases
27(1)
Exercise price reductions
27(1)
Conversion ratio changes
27(1)
Call provisions
28(1)
Extension provisions
28(1)
Delayed exercise terms
29(1)
Senior securities usable at par value
29(1)
Takeover provisions
30(1)
Registration of Warrants
30(1)
Income Tax Considerations
31(2)
Warrant Valuation and Investment Strategies
33(22)
Background
33(1)
Factors Affecting Warrant Pricing
33(2)
Time to expiration
34(1)
Stock price volatility
34(1)
Stock yield
34(1)
Interest rates
35(1)
Market sentiment
35(1)
Special provisions
35(1)
Normal-Value Curves
35(3)
Warrant Leverage
38(1)
Risk-Reward Relationship of Normally Priced Warrants
39(2)
Risk-Reward Relationship of Undervalued Warrants
41(1)
Callable Warrants
41(1)
Finding Undervalued Warrants
42(1)
Hedging Undervalued Warrants
43(3)
A bullish warrant hedge position
44(1)
A neutral warrant hedge position
45(1)
Hedging warrant portfolios with index options
45(1)
Hedging Overvalued Warrants
46(1)
A Few Words of Caution
46(9)
International Warrants
55(8)
Background
55(1)
International Warrant Market Overview
55(8)
Canada
55(1)
Germany
56(1)
Luxembourg and Italy
56(1)
Switzerland
57(1)
United Kingdom
57(1)
France
57(1)
Japan
58(1)
Australia
58(1)
New Zealand
59(1)
Southeast Asia---General
59(1)
Hong Kong
59(1)
Malaysia
60(1)
Singapore
60(1)
Mid-East
60(1)
Others
60(3)
SECTION II CONVERTIBLE BONDS AND PREFERRED STOCKS
The U.S. Convertible Bond Universe
63(18)
Background
63(1)
Information Sources
64(1)
Companies Having Actively Traded Convertible Bonds
64(2)
Company Analysis
66(1)
The Typical Convertible Bond's Underlying Common Stock
67(14)
The U.S. Convertible Preferred Stock Universe
81(14)
Background
81(1)
Information Sources
81(1)
Companies Having Actively Traded Convertible Preferreds
82(1)
Company Analysis
82(1)
The Typical Convertible Preferred's Underlying Common Stock
83(1)
Structured Convertible Securities
83(12)
Convertible Bond Valuation
95(16)
Background
95(1)
The New-Issue Convertible Securities Market
96(1)
Anatomy of a New-Issue Convertible Bond
97(3)
New-Issue Risk-Reward Analysis
100(2)
Why New-Issue Convertible Bonds are Undervalued
102(1)
The Secondary Trading Market for Convertible Securities
102(1)
Commonly Used Measurements for Valuing Convertibles
103(1)
Convertible Bonds Versus Convertible Preferreds
104(7)
U.S. Convertible Securities Indexes
111(38)
Background
111(1)
Convertible Securities Indexes
111(6)
Bear Stearns
111(1)
Credit Suisse First Boston
112(1)
Froley, Revy Investment Co.
112(1)
Goldman, Sachs & Co.
113(1)
Merrill Lynch Pierce, Fenner & Smith Inc.
114(1)
Morgan Stanley, Dean Witter
115(1)
PaineWebber
115(1)
Salomon Smith Barney
116(1)
Value Line
117(1)
Convertible Index Performance
117(32)
International Convertible Securities
149(26)
Background
149(1)
Information Sources
149(1)
Euroconvertible Market
150(1)
Japan
150(2)
Background
150(1)
Current market
151(1)
Asia Excluding Japan (Asia Ex-Japan)
152(6)
Background
152(1)
Current market
153(1)
Hong Kong
154(1)
India
155(1)
Korea
155(1)
Philippines
156(1)
Taiwan
156(1)
Thailand
157(1)
Minor Pacific convertible markets
157(1)
Europe
158(4)
Background
158(1)
France
158(1)
Switzerland
159(1)
United Kingdom (U.K.)
159(1)
Germany
160(1)
Minor European convertible markets
161(1)
Economic and Monetary Union (EMU)
161(1)
Rest of the Americas
162(1)
Canada
162(1)
Mexico
162(1)
Africa
162(1)
Global Convertible Security Indexes
162(13)
Jefferies & Company, Inc.
162(13)
SECTION III CONVERTIBLE BOND HEDGING STRATEGIES
Hedging Convertible Bonds with Common Stock
175(18)
Background
175(1)
An Attractive Convertible Bond Hedge Candidate
176(1)
Bullish Hedges
177(1)
Hedging on Margin
178(1)
Neutral and Bearish Hedges
178(1)
The Short Interest Rebate
179(1)
Convertible Bond Portfolios Hedged by Underlying Stocks
179(1)
Risks of Hedging
180(2)
Interest rate risk
180(1)
Event risk
180(1)
Sentiment risk
180(1)
Stock-market volatility risk
180(2)
Bond-market volatility risk
182(1)
Convertible Hedge Funds
182(11)
Hedging Convertible Bonds with Equity Options
193(10)
Background
193(1)
The Universe of Convertible Bonds with Listed Stock Options
193(1)
Puts and Calls Versus Short Sale of Stock
194(1)
Hedging Undervalued Convertible Bonds with Long Put Options
195(1)
Hedging Undervalued Convertible Bonds with Short Call Options
196(1)
Hedging Undervalued Convertible Bonds with Both Puts and Calls
196(7)
Hedging Convertible Bond Portfolios with Index Options
203(12)
Background
203(1)
Index Option Strategies
204(1)
Hedging Convertible Bond Portfolios with S&P 500 Index Options
205(1)
Hedging Convertible Bond Portfolios with Russell 2000 Index Options
206(1)
Finding Inefficiently Priced Index Options
207(8)
SECTION IV PORTFOLIO MANAGEMENT
Convertible Asset Classes
215(22)
Background
215(1)
Conventional Asset Classes
215(2)
Convertible Classifications
217(1)
The Five Convertible Asset Classes
218(1)
A Closer Look at the Five Convertible Asset Classes
219(18)
Performance Evaluation
237(16)
Background
237(1)
Nine Bond/Stock Market Scenarios
237(1)
Convertible Bonds as a Stock Market Alternative
238(1)
Stock Market Divergences
239(1)
Convertible Bonds as a Balanced Approach Alternative
240(1)
Bond Market Divergences
241(1)
Some Final Thoughts
241(12)
The Market Cycles
241(1)
Stock Market Volatility
242(1)
Bond Market Volatility
242(1)
Supply/Demand Imbalances
242(11)
APPENDICES
Appendix A Review and Analysis of Formulas for Warrants and Convertible Bonds 253(6)
Equity Risks
253(3)
Debt Risks
256(3)
Appendix B The Noddings Managed Warrant Indexes 259(10)
Background
259(1)
Index Construction
260(1)
Why Track Two Indexes
261(1)
Current Listing of Warrants Held in the Indexes
262(1)
Performance Data
262(1)
A Comparative Stock Index
262(1)
Performance Evaluation
263(6)
Appendix C The Noddings Managed Convertible Bond Indexes 269(28)
Background
269(1)
Classifications by Capitalization and Quality Ratings
270(1)
Security Selection
270(1)
Security Weighting
271(1)
Security Pricing
271(1)
Market Benchmarks
271(1)
The Noddings Medium-Cap Convertible Bond Index
272(1)
Cumulative returns
272(1)
Standard deviation
272(1)
Coefficient of variation
272(1)
Sharpe measure
273(1)
Up and down quarters
273(1)
Convertible Bonds Versus Their Underlying Common Stocks
273(24)
Selection criteria
274(1)
Underlying stock performance
274(1)
Convertible bond performance
275(22)
Appendix D Convertible Funds 297(6)
Background
297(1)
Information Sources
297(1)
Convertible Funds are Diverse Investments
298(1)
Closed-End Funds
298(1)
Mutual Funds
298(1)
Why Buy Convertible Funds
298(5)
Appendix E Basic Equity Option Strategies 303(12)
Background
303(1)
Bullish Strategies
303(1)
Neutral Strategies
304(1)
Bearish Strategies
304(1)
Straddles and Spreads
304(11)
Appendix F U.S. Convertible Securities Sub-Indexes 315(42)
Glossary 357(24)
Index 381

An electronic version of this book is available through VitalSource.

This book is viewable on PC, Mac, iPhone, iPad, iPod Touch, and most smartphones.

By purchasing, you will be able to view this book online, as well as download it, for the chosen number of days.

Digital License

You are licensing a digital product for a set duration. Durations are set forth in the product description, with "Lifetime" typically meaning five (5) years of online access and permanent download to a supported device. All licenses are non-transferable.

More details can be found here.

A downloadable version of this book is available through the eCampus Reader or compatible Adobe readers.

Applications are available on iOS, Android, PC, Mac, and Windows Mobile platforms.

Please view the compatibility matrix prior to purchase.