Role reversal

Mandatory convertibles

mandatoryconvertibles-1-gif

In February 2003, Deutsche Telekom unleashed a tornado on the financial markets, the fallout from which is still being felt today. The company launched a €2.3 billion bond issue, maturing in 2006 and carrying a 6.38% coupon. Such a deal would under normal circumstances have caused little more than a flicker of interest. But this was no ordinary bond: it was a mandatory convertible, scourge of scores of investors and under investigation by regulators across Europe.

Between 1996 and 2000, only

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here