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6 ways to arbitrage convertible bonds

Convertible bond arbitrage is an investment strategy for investors to obtain excess returns from the price fluctuations of convertible bonds. It can help investors obtain higher returns while reducing risks. Therefore, the convertible bond arbitrage investment strategy is favored by investors. Here are 6 ways to arbitrage convertible bonds.

First, investors can realize convertible bond arbitrage through the construction of bond portfolios. Investors can divide their bond portfolio into convertible bonds and non-convertible bonds, and then invest in these two parts separately to obtain higher returns.

Second, investors can realize convertible bond arbitrage through the arbitrage of convertible bonds and stocks. Investors can realize arbitrage by buying convertible bonds and selling stocks, or vice versa, when the price of convertible bonds fluctuates.

Third, investors can use the arbitrage of convertible bonds and foreign exchange to achieve convertible bond arbitrage. Investors can realize arbitrage by buying convertible bonds and selling foreign exchange when the price of convertible bonds fluctuates, or vice versa.

Fourth, investors can use the arbitrage of convertible bonds and futures to achieve convertible bond arbitrage. Investors can realize arbitrage when the price of convertible bonds fluctuates by buying convertible bonds and selling futures, or vice versa.

Fifth, investors can realize convertible bond arbitrage through the arbitrage of convertible bonds and other financial instruments. Investors can realize arbitrage by buying convertible bonds and selling other financial instruments when the price of convertible bonds fluctuates, or vice versa.

Finally, investors can also achieve convertible bond arbitrage through financing leverage. Investors can use financing leverage to achieve arbitrage by buying convertible bonds and selling bonds, or vice versa, when the price of convertible bonds fluctuates.

The above are 6 methods of convertible bond arbitrage. Among them, investors can choose a convertible bond arbitrage investment strategy that suits them based on their own risk preferences and investment goals. When conducting convertible bond arbitrage, investors need to understand the market conditions of convertible bonds and be familiar with the investment strategy of convertible bonds to ensure the success of convertible bond arbitrage.