Harmless Warrant

A harmless warrant is a warrant issued by the bond issuer that requires the holder to surrender the bond in order to buy another bond with the same terms from the issuer. It is a way for a bond issuer to make sure it doesn’t sell too much debt. A harmless warrant is a type of warrant, which is a security that gives the holder the right, but not the obligation, to trade a specific amount of an asset at a specified time.