Supply and demand scenario is poor for convertible bonds

Convertible funds could face redemptions without fourth quarter pick-up

Investor redemptions could prove a problem for convertible bond arbitrage managersif there is no pick-up in returns in the fourth quarter, according to a fundof fund manager specialising in the arbitrage strategy.

Charles Hovenden, portfolio manager of The Absolute Fund, which is invested approximatelyhalf in arbitrage-related strategies and half in equity long/short funds, saysmany fund managers are anticipating a fourth quarter pick-upin market volatility.

“The fall in implied volatilities in

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

Most read articles loading...

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