Comments on: Convertible Arbitrage Hedge Funds: The Perfect Combination of Investment Banking and Sales & Trading? https://mergersandinquisitions.com/convertible-arbitrage/ Discover How to Get Into Investment Banking Wed, 02 Nov 2022 01:46:28 +0000 hourly 1 https://wordpress.org/?v=6.2.2 By: M&I - Brian https://mergersandinquisitions.com/convertible-arbitrage/#comment-767543 Wed, 02 Nov 2022 01:46:28 +0000 https://mergersandinquisitions.com/?p=33945#comment-767543 In reply to Allen Zhou.

Thanks. If you think the actual volatility is much lower than the implied volatility, then yes, you could short the convertible bond and long the stock.

]]> By: Allen Zhou https://mergersandinquisitions.com/convertible-arbitrage/#comment-767484 Mon, 31 Oct 2022 21:04:13 +0000 https://mergersandinquisitions.com/?p=33945#comment-767484 Thanks so much! Definitely advanced stuff. I love the example.

Just wondering if you thought the volatility was lower – like 15% instead of 30% or 45%. Does that mean you should ‘short’ the conv bond?

]]> By: M&I - Brian https://mergersandinquisitions.com/convertible-arbitrage/#comment-765645 Sat, 01 Oct 2022 13:34:36 +0000 https://mergersandinquisitions.com/?p=33945#comment-765645 In reply to Tejas.

Thanks for sharing that.

]]> By: Tejas https://mergersandinquisitions.com/convertible-arbitrage/#comment-765315 Mon, 26 Sep 2022 20:13:44 +0000 https://mergersandinquisitions.com/?p=33945#comment-765315 This is mandatory reading for those interested in convertibles:

https://www.lw.com/admin/upload/SiteAttachments/Demystifying%20Modern%20Convertible%20Notes.pdf

]]>