system
Given the following post, respond as if you're commenting on Reddit:
human
Does the meme stonk phenomenon make convertible bonds more attractive?

Does the meme stonk phenomenon make convertible bonds more attractive?

As I understand it, GameStop wasn't able to quickly take advantage of its high stock price because of the paperwork required for a new stock offering, but AMC on the other hand had some outstanding convertible bonds that could be freely converted at any time. 

Now that sudden price spikes are more of a possibility to consider, would it be more advantageous for companies to have some convertible bonds, just in case?
gpt
No that's not how convertible bonds work. Convertible bonds are freely convertible at the option of the bondholders, not the issuer. AMD had issued bonds to Silverlake, which converted them when the share price went up - giving Silverlake a boatload of money. 

That being said, there are great reasons why you should issue a convertible bond under these circumstances. A convertible bond is essentially a normal low interest junior bond with an equity call option tagged onto it. If your share price volatility is very high, then you can issue a convertible bond with a very high premium (the difference between when you can exercise the option and the current share price) attached to it as long as you're not likely to also collapse when your share price is low. This is a bit special because there are very few other instruments which give you the ability to sell the volatility of your company. Nonetheless, AMD which was about to collapse is definitely not one of those types of companies - we're more talking about very volatile but reasonably established internet companies which don't have other debt and aren't likely to completely explode - like Zillow for example.