A debt/equity swap involves an exchange of capital for debt in order to write off money owed to creditors.
Usually they take place during bankruptcies, and the swap ratio between debt and equity may vary depending on individual cases.
In the event of bankruptcy, the debt holder is required to make a debt/share exchange, but in other cases the debt holder may decide to make the exchange, provided that the offer is financially advantageous.
Decoupling is when the performance of an asset class that has been correlated with other assets in the past no longer changes in line with expectations.
An increase refers to a positive change in an analyst’s view of the valuation of a particular security, based primarily on an improvement in that security’s fundamentals.
The Bank Note Swap Rate (BBSW) is a short-term interest rate used as a benchmark for valuing Australian dollar derivatives and securities, primarily floating rate bonds.
A basis point is a standard measure of interest rates and other percentages in finance.
– One basis point is equal to 1/100th of 1%, or 0.01% (and 0.0001 in decimal).
Bearer shares are unregistered equity securities owned by the owner of the physical shares documents. The issuing company pays dividends to holders of physical coupons.