An arbitrage strategy that aims to capitalize on mispricing between a convertible bond and its underlying stock. The strategy is generally market neutral; in other words, the arbitrageur seeks to generate consistent returns with minimal volatility regardless of market direction through a combination of long and short positions in the convertible bond and underlying stock.
|||If the convertible bond is cheap or undervalued relative to the underlying stock, the arbitrageur will take a long position in the convertible bond and a simultaneous short position in the stock. Conversely, if the convertible bond is overpriced relative to the underlying stock, the arbitrageur will take a short position in the convertible bond and a simultaneous long position in the underlying stock. The price of a convertible bond is especially sensitive to changes in interest rates, the price of the underlying stock, and the issuer's credit rating. Therefore, another type of convertible bond arbitrage involves buying a convertible bond and hedging two of the three factors so as to get exposure to the third factor at an attractive price.Convertible Bond Arbitrage
外汇网2021-06-19 23:56:37
81
标签：
- 上一篇： Non-Competitive Tender
- 下一篇： Interest Rate
随机快审展示
推荐文章
- 黑马在线:均线实战利器 8327 阅读
- 短线交易技术:外汇短线博弈精讲 3740 阅读
- MACD震荡指标入门与技巧 3888 阅读
- 黄金操盘高手实战交易技巧 4197 阅读
- 做精一张图 3010 阅读
热门文章
- 港币符号与美元符号的区别是什么啊？ 23311 阅读
- 我国各大银行汇率为什么不一样啊？ 13395 阅读
- 越南盾对人民币怎么算的？越南盾对人民币汇率换算方法是什么 9446 阅读
- 百利好环球欺诈，不给出金，无法联系。 8697 阅读
- 黑马在线:均线实战利器 8327 阅读