Can you short a convertible bond?
I am curious as to whether you could theoretically and / or practically short sell a convertible bond? I know that the typical convertible arbitrage strategy is short the equity and long the convert, but is it possible and do people ever short converts?
Any thoughts or insight would be much appreciated.
Yes you can. A lot of hedge funds will run convert arb by going short the convert and long the equity
Iure ut saepe est sed veritatis quos soluta porro. Quisquam odio voluptates accusamus fugiat tenetur nulla nisi. Voluptatem molestiae dolores enim.
Voluptates atque est et recusandae quo at sunt voluptatem. Doloribus iusto quae culpa impedit ad. Qui dolorem voluptas quo illo aliquam et porro. Praesentium ratione fugit perferendis eveniet.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...