Case | HBS Case Collection | March 2006

Wells Fargo Convertible Bonds

by Malcolm P. Baker and Elizabeth Kind

Abstract

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.

Keywords: Capital Structure; Financial Institutions; Banks and Banking; Debt Securities; Financial Management; Financial Strategy; Strategy; Banking Industry;

Citation:

Baker, Malcolm P., and Elizabeth Kind. "Wells Fargo Convertible Bonds." Harvard Business School Case 206-022, March 2006.