Deconstructing Convertible Bond Arbitrage

In this episode of Alternative Angles, host Steve Rosen, a former portfolio manager in Fidelity’s High Income & Alternative Investing division, digs into convertible arbitrage. Along with guests Seth Gold, a portfolio manager in Fidelity’s Arbitrage and Hedging Solutions group, and Michael Youngworth, a director in Global Equity Derivative Research and the Head of Global Convertibles and Preferreds Strategy at Bank of America, Steve explores an investment discipline worth considering as a potential source of uncorrelated absolute return with low volatility.Drop in as Seth and Michael trade insights on this relative value alternative investment strategy, including: The traits of convertible bonds and why companies issue them The universe of different players in the space–and the roles they play Key components of a convertible bond arbitrage strategy and how it can be used to tap into idiosyncratic sources of alpha, and potentially take advantage of market volatility Potential changes they see on the horizon–and areas of opportunity