But calling up capital in, say, a euro-denominated fund now could lock in money from those U.S. backers at an unfavorable exchange rate, eroding potential gains for those investors.

Consider the company's transfer prices for sales between affiliates. What effect might alternative pricing policies have on the gains or losses from exchange rate changes?

Convertibles have a lower coupon rate that non-convertible debt, but they offer investors a chance for capital gains in exchange for the lower coupon rate.