Ascot (finance)
An ASCOT, or Asset Swapped Convertible Option Transaction, is an option on a convertible bond used to separate the cash flows of the underlying bond from the equity option embedded in the convert. Buyers of ASCOTs include fixed income portfolio managers and other investors that want exposure to the rate and credit risks of the convert issuer; cashflows from the convert would be passed through to these buyers. Sellers of ASCOTs typically include trading desks that want to retain exposure to the potentially lucrative equity optionality.
Further reading
- Calamos, Nick P., Convertible Arbitrage: Insights and Techniques for Successful Hedging, John Wiley & Sons, 2003, 272 pages. ISBN 0-471-42361-0.
- Fabozzi, Frank J., The Handbook of Fixed Income Securities, 6th ed., McGraw-Hill, 2005, 1500 pages. ISBN 0-07-144099-2.
External sources
http://moe.ecrc.nsysu.edu.tw/English/workshopE/2006/2006-A4-6.pdf
gollark: Okay, I'll go skim that.
gollark: It would probably help to use less awful voting systems.
gollark: Well, I'm waiting for their explanation on 1, 2 sounds like the thing I said would be bad, 3... maybe?, 4 doesn't seem like a problem, and 5 might be something dislikeable but not right wing extremism.
gollark: mautam has other reasons, I mean.
gollark: I would agree with that - having the minimum standard be "immediately disavow anything some group decides they don't like" would be intensely problematic - but maybe they have other reasons.
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