Convertible bonds are bonds that vest the right to convert the bonds to stocks under specific conditions within a certain period.
Structure
To represent convertible bonds in the system, a product category (070 Convertible bonds) has been created, for which you must define a product type in Customizing for the securities area.
You create convertible bonds as a
Class. To do this, you must have already created the stock, to which you want to convert the bond, as a class.
You convert the positions/partial positions using the Exercise security right function.
Convertible Bonds