KIS 채권평가 - Beyond Pricing
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Introduction
Introduction
- KIS Pricing
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Asset Pricing
Asset Pricing
- Bond Pricing
- Alternative Product Pricing
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Fund Evaluation
Fund Evaluation
- Bond Index
- ETF
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Solution
Solution
- Solution Service
- Consulting Service
- Contents Service
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Beyond Pricing
Beyond Pricing
- KIS-Net
- Data Providing
Asset Pricing
CB/EB/BW
CB/EB/BW
- CB(Convertible Bond)
A type of debt security that can be converted into a predetermined amount of the underlying company's equity at conversion period during the bond's life
- EB(Exchangeable Bond)
A type of hybrid debt security which gives the bondholder the right to convert its debt security into common equity at a predetermined price during conversion period
(already-issued) - BW(Bond with Warrant)
A bond with a warrant that gives the right but not the obligation to buy a predetermined amount of common equity at a predetermined price
Product Structure
| CB | EB | BW | |
|---|---|---|---|
| Bond (Option) | Bond (Option) | Non- Detachable | Bonds (Option) |
| Warrant | |||
| Share conversion rights | Share conversion rights to third party company | Detachable | Bonds (Option) |
| Detachable Warrant | |||
Comparison
Pricing the bond sector
Bonds with embedded option pricing
- BDT(Black-Derman-Toy) Model Applies
- Create an interest rate binomial tree that fits spot curves on a given date
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- present value is computed using backwardation from maturity taking into call/put option into consideration
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