I think I finally understood this transaction, thanks to this article: https://www.investopedia.com/terms/c/convertible-hedge.asp
The key bit I missed before is that the bond is tradeable, so it has a price and the price fluctuates alongside with the stock price.
Hedge is taken against change in bond price. The more common non-tradeable CN would not require such hedging.
Thanks to everybody participating in the discussion.
I think I finally understood this transaction, thanks to this...
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Last
$5.22 |
Change
-0.060(1.14%) |
Mkt cap ! $4.412B | |||
| Open | High | Low | Value | Volume |
| $5.28 | $5.28 | $5.21 | $19.23M | 3.684M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 7 | 29633 | $5.22 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $5.24 | 6000 | 1 |
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| Last trade - 16.10pm 02/10/2024 (20 minute delay) ? |
| NHC (ASX) Chart |