Convertible Arbitrage financial definition of Convertible Arbitrage. Convertible Arbitrage finance term by the Free Online Dictionary.

Convertible Arbitrage

In the context of hedge funds, a style of management that involves the simultaneous purchase of a convertible bond and the short sale of shares of the underlying stock. Interest rate risk may or may not be hedged.

Convertible arbitrage

A practice, usually of buying a convertible bond and shorting a percentage of the equivalent underlying common shares, to create a positive cash flow position (with expected returns above the riskless rate) in a static environment and benefit from capital appreciation should the convertible's premium rise. This form of investing is far from riskless and requires constant monitoring. See: Chinese hedge and setup

Convertible Arbitrage

An investment strategy in which one buys a convertible bond and short sells the underlying common stock. The idea behind convertible arbitrage is to profit from inefficiency in the pricing of the convertible bond. However, convertible arbitrage is risky and requires monitoring because the pricing inefficiencies may only be temporary. It is a strategy associated with hedge funds. See also: Chinese hedge.

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alternative investments Arbitrageur Multiple Arbitrage Set Up	The strong performance was led by strategies focusing on Emerging Markets, Convertible Arbitrage and Energy/Basic Materials. Hedge fund industry assets surge as performance leads industry ... by CPI Financial CONVERTIBLE CAUTION After a miserable 2008, most hedge funds have rebounded, none more so than those practicing convertible arbitrage. CONVERTIBLE CAUTION by Ben Levisohn / BusinessWeek This may be in emerging markets, distressed debt (bonds issued by companies desperate to avoid bankruptcy), convertible arbitrage (being `long' of, or owning, the convertible stock of a company and `short' of, or selling, the underlying shares) or -- the largest section -- ``long/short'', an equity fund which can be either long or short of particular shares. London Eye: The View fom Ratbone by Daily Post (Liverpool, England)	Conversion de la deuda Conversion de la deuda en capital conversion equivalent conversion factors Conversion Feature Conversion forzosa Conversion involuntaria Conversion Option Conversion Parity Conversion Parity Price Conversion Parity/Value Conversion Period Conversion Premium Conversion Price Conversion Privilege Conversion Ratio Conversion Value Convert Converted Put Convertibilidad de la moneda Convertibilite de la monnaie Convertibility Convertible Convertible 100 Convertible Adjustable Preferred Stock Convertible Arbitrage convertible ARM Convertible Bond Convertible Currency Convertible Debenture Convertible Eurobond Convertible Exchangeable Preferred Stock Convertible Floating-Rate note Convertible Hedge Convertible Preferred Stock Convertible Price Convertible Security Convertible Subordinate Note Convertible Term Convex Convexity convey Conveyance Conveyance Tax Cook the Books Cookie Jar Accounting Cooling Degree Day cooling off period Cooling-Off Period Cooling-Off Rule Coop	convertere in converters converters Converters (industry) Convertibilidad de la moneda Convertibilite de la monnaie convertibility convertibility convertibility convertibility Convertibility of Currencies convertible convertible convertible convertible convertible Convertible (car) Convertible (car) Convertible (car) Convertible (car) Convertible (security) Convertible (security) Convertible 100 Convertible adjustable preferred stock Convertible adjustable preferred stock Convertible adjustable preferred stock Convertible adjustable preferred stock Convertible Adjustable Preferred Stocks Convertible and Quantitative Strategies Fund Convertible and Subordinated Hybrid Equity-Linked Securities Convertible Arbitrage convertible ARM convertible bond convertible bond convertible bond Convertible bonds Convertible bonds Convertible car Convertible car Convertible car Convertible car Convertible Currencies Convertible currency Convertible currency Convertible debenture Convertible debenture Convertible Debentures Convertible debt Convertible debt Convertible Debts Convertible Debts Convertible eurobond Convertible Eurobonds Convertible exchangeable preferred stock Convertible Exchangeable Preferred Stocks Convertible Floating Rate Note convertible floating-rate note Convertible Floating-Rate Notes Convertible Freighter Convertible hedge Convertible Hedges

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References in periodicals archive

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alternative investments
Arbitrageur
Multiple Arbitrage
Set Up

The strong performance was led by strategies focusing on Emerging Markets, Convertible Arbitrage and Energy/Basic Materials.

Hedge fund industry assets surge as performance leads industry ... by CPI Financial

CONVERTIBLE CAUTION After a miserable 2008, most hedge funds have rebounded, none more so than those practicing convertible arbitrage.

CONVERTIBLE CAUTION by Ben Levisohn / BusinessWeek

This may be in emerging markets, distressed debt (bonds issued by companies desperate to avoid bankruptcy), convertible arbitrage (being `long' of, or owning, the convertible stock of a company and `short' of, or selling, the underlying shares) or -- the largest section -- ``long/short'', an equity fund which can be either long or short of particular shares.

London Eye: The View fom Ratbone by Daily Post (Liverpool, England)

Conversion de la deuda

Conversion de la deuda en capital

conversion equivalent

conversion factors

Conversion Feature

Conversion forzosa

Conversion involuntaria

Conversion Option

Conversion Parity

Conversion Parity Price

Conversion Parity/Value