what are hung convertibles 
hung convertibles are convertible securities where the share price of the underlying security is well below the conversion price making it unlikely that the securities will be converted into common stock since unconverted securities must be repaid at face value most issuers wish to prevent their convertibles from being hung understanding hung convertiblesconvertible securities are a type of bond note or preferred stock that can be converted into the common shares of the issuing company at a fixed price and date in the future many companies with low credit choose to issue convertible securities as an inexpensive way to raise money 