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exchangeable debt

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Financial Dictionary

Exchangeable Debt

Similar to convertibles, except this type of debt can be converted into the shares of a company other than the issuing company (usually a subsidiary).

Investopedia Commentary

Often used by corporations to sell a large position in the shares of another company.

Related Links

Convertible Bonds: An Introduction
Bond Basics Tutorial

See also: Bond, Convertible Bond, Convertibles, Subsidiary

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