Foreign Currency Convertible Bond - FCCB

Foreign convertibles are pretty sweet: top down in the sun, and up in the rain.

Likewise, some investors are fans of foreign currency convertible bonds, or FCCBs.

Foreign currency convertible bonds are convertible bonds (we’ll go over that in a sec) that are issued in a foreign currency relative to the issuer. So if you’re an American bond issuer, you could issue a foreign currency bond in any currency that’s not USD (otherwise, it’d just be a bond...a U.S. bond).

Convertible bonds, like convertible cars, let investors switch things up depending on the weather. The default for a convertible bond is to act like a regular bond, with things like coupon and principal payments...but it can be converted into stock.

Putting it altogether: a FFCB is a bond (one that can be converted into stock) that’s issued in a different currency than the issuer’s domestic currency. Get some.