Falling down

Despite steady performances in past years, many fund of fund managers believe convertible arbitrage is heading into a stiff tail wind.

'Every four years the convertible arbitrage sector blows up, it is like the Olympic Games,' says David Smith, who at Global Asset Management runs $6.5bn in hedge strategies. 'We saw that in 1994, 1998 ' and what year is it this year?'

But the bad news is yet to be revealed by the statistics. The current batch from Standard & Poor's shows a good return from 1/2

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here