Replies to post #175 on Money 101 (Money)

[lowman]

Never heard it put THAT way! LOL. More often, they're viewed as a signal to run the other way, but that's just me.

[DownWithPumpers]

Investopedia says debentures are bonds with no collateral. Is that to say a convertible debenture would be viewed as a weak link.

No, not necessarily. I would like to see two positive things:
1. An interest rate around market 5% to 8% depending on the length of the loan.
2. A conversion price that's around 40% above current prices.

It's also necessary that the bond's conversion feature be absolutely fixed; no adjustment for dropping prices.