Convertible Arbitrage Investment Definition

Below please find a definition of “Convertible Arbitrage Investment”

Financial Analysis Training & Glossary TermsConvertible Arbitrage Investment: A conservative, market-neutral approach that aims to profit from pricing differences or inefficiencies between the values of convertible bonds and common stock issued by the same company. Managers of such funds generally purchase undervalued convertible bonds and short-sell the same issuers’ stock. The approach typically involves a medium-term holding period and results in low volatility.

Free MP3 Download:  To download our free 35 minute audio interview with expert Richard C. Wilson on how to succeed in the field of finance please click here.

Fast Financial Training: If you want to take your finance or business career to the next level you should explore our financial analysis certification program, or our training programs on financial modeling, investment banking, hedge funds, or private equity. All of these programs are offered on

Expand Your Financial Vocabulary: Read more finance terms and definitions

Tags:  Convertible Arbitrage Investment Strategy, Convertible bond arbitrage, Convertible arbitrage fund, Convertible arbitrage funds, What is convertible arbitrage?, Convertible arbitrage fund hedge

About Richard Wilson