20 years: Equity capital markets
In the first of this two part series, Mark uses his experience as a calculation agent to provide insight into how the role helps both issuers and investors to understand how calculations impact them. He delves into adjusting the conversion price when an issuer has convertible bonds outstanding and is due to pay a dividend, as well as dealing with cash settlement conversions.
In the first of this two part series, Mark uses his experience as a calculation agent to provide insight into how the role helps both issuers and investors to understand how calculations impact them. He delves into adjusting the conversion price when an issuer has convertible bonds outstanding and is due to pay a dividend, as well as dealing with cash settlement conversions.
5 mins 4 secs
The calculation agent is responsible for carrying out the calculations set out in the terms and conditions of the transactions. The role of a calculation agent is to be able to help the issuers and investors understand how those calculations affect them.
Key learning objectives:
Understand how a Calculation Agent helps its clients
Understand how an issuer settle convertible bonds after the investor converts it
Describe the Net Share Settlement