Wells Fargo Convertible Bonds

Posted: 22 Sep 2008

See all articles by Malcolm P. Baker

Malcolm P. Baker

Harvard Business School; National Bureau of Economic Research (NBER)

Liz Kind

affiliation not provided to SSRN

Date Written: March 21, 2006

Abstract

SUBJECT AREAS: Banking, Capital markets, Capital structure, Convertible bonds, Financial strategy, Valuation.

Howard Atkins, the chief financial officer of Wells Fargo, is considering issuing $3 billion in convertible debt. With an investment-grade credit rating, Wells Fargo is not the typical issuer of convertible securities, but the market conditions in 2003 are unusual. Strong demand from both convertible arbitrage hedge funds and income mutual funds appears to create an opportunity for Wells Fargo to raise capital at a low cost.

Suggested Citation

Baker, Malcolm P. and Kind, Liz, Wells Fargo Convertible Bonds (March 21, 2006). HBS Case No.: 206-022, Available at SSRN: https://ssrn.com/abstract=1271984

Malcolm P. Baker (Contact Author)

Harvard Business School ( email )

Boston, MA 02163
United States
617-495-6566 (Phone)

HOME PAGE: http://www.people.hbs.edu/mbaker

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Liz Kind

affiliation not provided to SSRN

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