Editing Convertible security (section)

==Advantages to the investor==
Convertible bonds generally provide a higher current yield than common stock due to their fixed income features and superior claim to the assets of the company in the event of default. If the value of the underlying common stock rises, the value of the convertible should rise as well. The investor can benefit from the stock's upside movement by selling the bond without converting it to stock. Alternatively, the value of the common stock could fall, but in that case the convertible's price will decline only to the point where it provides an acceptable return as a bond equivalent.<ref>{{cite book |title=Ritchie op cit |page=192}}</ref>