# Convertible arbitrage (also referred to in German as Anleihe-AktienArbitrage)

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- Post ID: 589867
- Modified: 2023-07-25T21:00:11+00:00
- Language: en

## Definition

The exploitation of valuation differences between convertible bonds and shares of a company (an investing strategy that involves the long position on a convertible security and a short position in its converting common stock). On a larger scale, hedge funds are dedicated to this particular business segment. In this way, they ensure that the prices of the shares and convertible bonds of the company in question are synchronized on each trading day (synchronous run). - See Hedge fund types, Index arbitrage, Long-short arbitrage. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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