// definition
Convertible debt
Debt that can convert into equity
Short definition
Debt that can be converted into equity under the instrument’s terms. Conversion may be controlled by the holder, the issuer or specified contractual provisions. Before conversion, contractual rights and credit risk differ from the rights of an equity holder. The actual instrument determines the conditions that apply.
risk atlas
Knowledge map
Related analyses
Primary sources
- SEC Investor.gov, Convertible SecuritiesDefinition and general conversion arrangements; the instrument determines its terms.