A practice, usually of buying a convertible bond and shorting a percentage of the equivalent underlying common shares, to create a positive cash flow position (with expected returns above the riskless [..]

Convertible Arbitrage funds study the relationship between a company’s stock and its convertible bonds.

Buying convertible bonds and selling short the shares into which they can be converted. The strategy is based on the assumption that the convertible bond is priced incorrectly relative to the stock.

Definition A strategy involving the purchase of convertible securities and the subsequent shorting of the corresponding stock. Conversion will offset the short position. The transaction may be profita [..]

Investment strategy that encompasses taking a long position on convertible security combined with a short position in the converting common stock.

In the context of hedge funds, a style of management that involves the simultaneous purchase of a convertible bond and the short sale of shares of the underlying stock. Interest rate risk may or may n [..]

A practice, usually of buying a convertible bond and shorting a percentage of the equivalent underlying common shares, to create a positive cash flow position (with expected returns above the riskless [..]