Consider Convertible Arbitrage To Balance Performance, Risk

Pernambuco, Andrew
May 2003
Financial Executive;May2003, Vol. 19 Issue 3, p24
Academic Journal
There is considerable growth of investments in hedge funds in the U.S. The results of a survey of the attitudes of European institutions towards investing in hedge funds is discussed. Advantages offered by funds that hedge convertible securities has been given. There are also risks in convertible arbitrage. The search for investment alternatives has led increasing numbers toward hedge funds. Hedge funds are now almost mainstream. One of the most attractive features to investors is that convertible securities and their debt obligations hold a senior position to common stock.


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