• They get downside protection (if the company fails, they’re still creditors and get paid before equity holders in bankruptcy). • They get upside potential (if the company does well, they convert into stock and participate in the growth).
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Why investors like convertible debt.. 🌲
• They get downside protection (if the company fails, they’re still creditors and get paid before equity holders in bankruptcy).
• They get upside potential (if the company does well, they convert into stock and participate in the growth).