Convertible arbitrage hedge funds ________.

Question

Quizplus · Accepted Answer

Convertible arbitrage hedge funds hold long positions in convertible bonds and offsetting short positions in shares to profit from the difference between the price of the convertible bond and the underlying equity. They aim to minimize the impact of market movements by hedging their positions using various strategies. They may also use derivative products to hedge their short positions in convertible bonds. The other options, such as profiting from mispriced interest-sensitive securities or establishing long and short positions in global capital markets, do not specifically describe the strategy used in convertible arbitrage hedge funds.

Convertible Arbitrage Hedge Funds ________