Convertible Arbitrage Hedge Funds: The Perfect Combination of Investment Banking and Sales & Trading?
Brian DeChesare
AUGUST 31, 2022
Convertible Arbitrage Definition: Convertible arbitrage is a relative value strategy in which a hedge fund profits based on the pricing discrepancy between a company’s convertible bonds and its underlying stock; the fund exploits changes in volatility, credit quality, and interest rates to make money while minimizing overall market risk.
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