Convertible bonds are unique financial instruments that combine elements of both fixed-income securities and equities. Since these instruments can offer unique payout profiles, they are often used for diversification within broad diversified portfolios. Convertible bonds are issued by companies as a way to raise capital and provide investors with regular interest payments while offering the potential to convert the bonds into a predetermined number of shares of the company’s stock. The conversion from the bond to stock happens at specific times during the bond’s lifetime and is usually at the discretion of the bondholder. This dual nature makes them attractive