Capital arbitrage trades bears fruit for credit hedge fund

By Hugh Keane

Trade helps fund post positively monthly return for October

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Comment by: Anonymous. Posted 11 years ago [2012-11-10 17:29:05]

I don't know anybody at Raven Rock and had never heard of them before the Creditflux October 15 article at http://www.creditflux.com/Trading/2012-10-15/Convertible-bond-trade-helps-credit-hedge-fund-to-positive-return/. But I like these people! They read docs and they think! The only qualm I have with this trade is that going long the high-coupon and short the low-coupon would seem to be a poor idea in a Sprint bankruptcy (since the bonds should go to essentially the same price).