Well, the easiest would be much larger coupons on a fixed conversion rate. So instead of seeing a 10 point coupon on a note bearing 10% interest, you'll see a 20 point coupon on 10% interest...minimal. Then the conversion rate is applied...lol.
Most cats can never figure out how much is left to convert..and now they will be completely clueless. They'll see a 500k note, exclude the coupon of i.e. 10 points and maybe assume interest(most don't). The reality is that it is actually a 550k note plus interest. They completely ignore the fact that said Company had to purchase the right to issue said note..lol.
I bet we see as high as a 30 point coupon..and most will never see it :)
i.e. USD1 Million, 30 point coupon, interest @ 10% , where as the borrower gets USD1 Million..pays for fees and then owes USD1.3 Million plus interest @ 10%
mmmmm...this is going to get interesting how they work around this in creative/non creative ways...lol