Send us a text

Uncover the opaque world of hedge fund arbitrage strategies where the stakes are high, and the strategies complex. I'm Edward Finley, your guide through the maze of these strategies that seek to earn return by uncovering mispricing of risks but really do so by taking on much more hard-to-understand risks.

In this episode, we'll start with the two main bond arbitrage strategies:  convertible arbitrage and fixed income arbitrage. We'll discover the role of convertible arbitrage in providing liquidity to the very important convertible bond market. Learn why certain companies lean towards issuing convertible bonds in the first place, and how important convertible arbitrage strategies are in making this market function well.  But gain an understanding of what risks investors take in providing that liquidity.

Then join me as we explore the two primary fixed income arbitrage strategies:  interest rate arbitrages and credit arbitrages.  Learn about the two most common interest rate arbitrages that focus on preferences of bond investors and peculiarities in how Treasury futures settle to create opportunities for investors.  And uncover the three typical credit arbitrage strategies and their approach to earning returns when markets misprice a firm's risks.  And in both cases, observe with me the complexities of owning these kinds of risks.

In the next episode, we'll close-out hedge fund arbitrage strategies by exploring the equity-focused arbitrage strategies:  merger arbitrage, distressed investing, and event-driven arbitrage.

Join us as we embark on this exciting expedition into the hedge funds' arbitrage playbook and their ripple effects across the financial markets.

Episode Slides:  https://1drv.ms/p/s!AqjfuX3WVgp8ukUSIvQvpsQ8WjaM

Thanks for listening! Please be sure to review the podcast or send your comments to me by email at info@not-another-investment-podcast.com. And tell your friends!