The Foreign Currency Convertible Bond (FCCB)

The foreign currency convertible bond, FCCB, is a type of international investment that allows you to get the benefit of a bond and a stock. It is issued by foreign corporations. When you invest in this type of bond, you are going to have to do so with a foreign currency. This requires you to convert your dollars into the specific foreign currency, before you can make a purchase.

Convertible Bond

This type of security allows you to convert the bond into stock in the future. This means that you can receive regular interest payments when it is a bond, and then you can choose to convert it over to a stock in the future. Many people that own bonds do not like the fact that they cannot take advantage of large appreciation in a company. However with this type of convertible bond, you can leave it as a bond for as long as you want and then take advantage of the appreciation in the company by converting to stock.

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