|
|
Article: CONVERTIBLES IN HIGH Gear.(bond/stock debentures)
- Article from:
- Electronic Business
- Article date:
- October 1, 2001
- Author:
CopyrightCOPYRIGHT 2001 Reed Business Information, Inc. (US). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Part bonds, part stocks, these debentures are 'pistol hot'
For a while there, obtaining capital was about as easy as drive-through banking for technology companies: All they had to do was pull up to the window and exchange stock certificates--or even stack options--for cash from eager investors.
But that was during boom times. The industry downturn has put the brakes on traditional funding sources. Investors are afraid to buy tech stocks and companies are afraid to offer them, for fear they'll be undervalued.
If stock is out, so often are traditional bonds. Companies that most need capital, especially in the telecom sector, are being ...