Results for tag: "Convertible Arbitrage"

Convertible arbitrage is a type of capital market strategy that involves taking advantage of discrepancies in the pricing of convertible securities. It involves buying the convertible security and shorting the underlying stock, in order to profit from the difference in the two prices. This strategy is often used when the convertible security is trading at a discount to its intrinsic value. Convertible arbitrage is a form of relative value arbitrage, which involves taking advantage of pricing discrepancies between two related securities. It is a low-risk strategy, as the investor is not exposed to market risk, but rather to the risk of the underlying stock. Some companies in the convertible arbitrage market include Citadel LLC, Two Sigma Investments, and D.E. Shaw & Co. Show Less Read more