Convertible arbitrage hedge funds profit from disparities in the relationship between prices for convertible bonds and fixed-income bonds.

Name: Convertible arbitrage hedge funds profit from disparities in the relationship between prices for convertible bonds and fixed-income bonds.
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Question

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Convertible arbitrage hedge funds primarily profit from the price discrepancies between convertible securities (like convertible bonds) and the underlying stocks into which they can be converted, not fixed-income bonds.

Convertible Arbitrage Hedge Funds Profit from Disparities in the Relationship