Matt McFarland

Matt McFarland

Director, CBOE

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Reverse Convertibles or Flex® Put Sale?

In today’s low interest rate environment, reverse convertibles have been popular in the structured note market as they are one avenue where investors can achieve outsized yields. Reverse convertibles are structured notes, typically on single stocks, where the investor receives periodic coupon payments, but runs the risk of purchasing shares at above-market levels at maturity.