December 2004 An insight into how convertible arbitrage works and what lies behind its extraordinary risk adjusted return statistics Heard of an asset class that earns current income, has a principal ...

Convertible arbitrage has been a key hedge fund strategy for more than a decade and has offered steady positive returns regardless of market direction. Although the strategy has returned an annualized ...

Convertible arbitrage exploits mispricings between convertible bonds and their underlying equity, offering market-neutral returns with low correlation to broader markets. A passive, static portfolio ...

The EMEA convertible bond market has made a recovery and is back as a financing option for corporates. High-quality investment-grade corporate credit has driven a frantic second quarter for ...

Convertible Arbitrage: Managers invest in companies' convertible securities. Typically, they will be long the convertible bond and short the common stock of the same company. Positions are designed to ...

South Korea may see a wave of convertible bond issuance once a short-selling ban is lifted soon, thanks to the likely return of hedge funds that are major buyers of the hybrid debt. A senior banker at ...

A team of traders specializing in convertible bonds at multistrategy hedge fund LMR Partners is on track for record yearly gains as a surge in issuances and a pickup in corporate actions create a ...