What are the bond characteristics of mezzanine bonds?

Mezzanine securities such as convertible bonds (CBs) are corporate bonds with interest and a maturity at the time of issuance, but they also carry a right to convert into shares after a certain period.

If the share price rises, you can convert to seek a capital gain; if not, you can hold them as bonds to maturity and receive the agreed return. However, the bond portion ultimately depends on the issuer's ability to repay, so credit risk cannot be avoided.