I see this term quite often when it comes to certain styles that hedge funds use.What is this exactly and is it profitable?
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Convertible arbitrage
- Thread starter NasdaqTrader
- Start date
That's where I keep my car overnight.
"A strategy involving the purchase of convertible securities and the subsequent shorting of the corresponding stock. Conversion will offset the short position. The transaction may be profitable if the convertible is priced incorrectly relative to the stock. "
"A strategy involving the purchase of convertible securities and the subsequent shorting of the corresponding stock. Conversion will offset the short position. The transaction may be profitable if the convertible is priced incorrectly relative to the stock. "
Quote from gms:
That's where I keep my car overnight.
"A strategy involving the purchase of convertible securities and the subsequent shorting of the corresponding stock. Conversion will offset the short position. The transaction may be profitable if the convertible is priced incorrectly relative to the stock. "
Do these mispricings of convertible securities happen often?Is this something an individual investor can partake in profitably?
Here's a book for you to read by a large convert shop out there...Calamos Asset Management:
You can find it on Amazon:
Convertible Arbitrage: Insights and Techniques for Successful Hedging
Lots of the large hedge funds do this. This is the strategy that started Citadel (top 5 hedge fund in the world, here in Chicago)...amazing story.
You can find it on Amazon:
Convertible Arbitrage: Insights and Techniques for Successful Hedging
Lots of the large hedge funds do this. This is the strategy that started Citadel (top 5 hedge fund in the world, here in Chicago)...amazing story.