D
Debt Exchangeable for Common Stock (DECS...
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Debt Exchangeable for Common Stock (DECS)
Stock and DECS Return Profilesi
Composition of DECS
Exchange
Rights
/
Obligations
at
Maturity
of DECS
A debt issue with an embedded
short
put and
long
call combined with an
interest
coupon
. The
issuer
is the issuer (or a block holder) of the
underlying
common stock; and, the DECS issue is ultimately convertible into the common. Compare with
Dividend Enhanced Convertible Stock (DECS)
which is a
preferred stock
with a similar return pattern and the same acronym. Also called
Automatically Convertible Enhanced Security (ACES)
, Preferred Redeemable Increased Dividend Equity Security (PRIDES),
Protected Equity Participation (PEP)
, Fixed Income Equity-Linked Debt (FIELD).
Glossary
*
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