Lazard's George on the case for hedged convertibles

clock • 2 min read

In today's market environment, uncertainty is widespread.

With some equity, credit and interest rate markets stretched, downside risks significantly outweigh upside potential. For investors seeking to protect their portfolios against these downside risks without having to forgo gains to the upside, hedged convertible bonds could present a solution. Within hedged convertibles strategies, specifically convertible arbitrage strategies, a long convertible bond position is paired with a short stock position in the same company. Alken's Dunmall: Convertibles can be the most attractive investment In rising markets, the long convertible bond p...

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