Convertible debt is exceptionally attractive to investors in volatile markets because it offers the security of a bond with the upside of equity. That is why convertible debt was one of the strongest asset classes during the...more
1/4/2022
/ Convertible Bonds ,
Convertible Debt ,
Corporate Financing ,
Corporate Issuers ,
Corporate Taxes ,
Dilution ,
Equity Financing ,
Equity Markets ,
Equity Securities ,
FIRPTA ,
Hedging ,
Investors ,
PFIC ,
Tax Deductions ,
Tax Planning
Volatile trading markets and economic instability may prompt taxpayers to modify, purchase, or repurchase debt; participants should consider the tax consequences.
Key Points:
..Issuers may incur immediate income in the...more
But Holding Period and Other Requirements Add Complexity -
On October 31, 2018, the US Treasury and Internal Revenue Service issued proposed regulations (the Proposed Regulations) that would eliminate, in most...more