The primary issuers of convertible bonds are smaller, less than top-grade companies.

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Convertible bonds are often used by smaller or less than top-grade companies that may struggle to attract investors with traditional bonds or equity. By issuing convertible bonds, these companies can offer a more attractive investment opportunity by providing potential upside in the form of conversion to equity while also providing some downside protection in the form of fixed income payments. Additionally, the convertible bond market is often more forgiving toward smaller companies, making it an appealing option for them.

The Primary Issuers of Convertible Bonds Are Smaller, Less Than