To map convertible bonds in the system, you can use the default product category Convertible Bonds (70) . To define a product type, in Customizing for the Transaction Manager choose  Securities Master Data Product Types Define Product Types.

You create convertible bonds as classes in the system. Make sure that the stock to which the bond is to be converted already exists as a class.

To convert positions or partial positions of a bond, on the SAP Easy Access screen choose  Treasury and Risk Management Transaction Manager Securities Trading Security Rights Exercise (FWER).