when can bondholders convert their bonds into shares 
bondholders can usually convert their bonds into shares of the issuing company s stock at any time before the bond matures as long as the conversion conditions specified in the bond s terms are met sometimes a company may include language saying the instrument can only be converted after being held or issued for a certain amount of time i e no sooner than three month the bottom lineconvertible bonds are a type of hybrid security that offer investors the option to convert their bonds into shares of the issuing company s stock at a predetermined conversion price they provide investors with the potential for capital appreciation through equity participation while also offering downside protection through fixed interest payments 