Naked Warrant

From Reuters Financial Glossary

Issued as a stand-alone warrant instead of being attached to a bond. Issuers save costs because the warrant exercise period corresponds to the call feature of a previous bond issue, so a call premium need not be paid. If holders exercise their warrants, resulting in new securities being issued, then the issuer can match that exposure by exercising previous existing calls.

See also: Warrant

Views
Personal tools