{"product_id":"convertible-arbitrage-9780471423614","title":"Convertible Arbitrage","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003eMinimize risk and maximize profits with convertible arbitrage\u003cbr\u003e Convertible arbitrage involves purchasing a portfolio of convertible securities-generally convertible bonds-and hedging a portion of the equity risk by selling short the underlying common stock. This increasingly popular strategy, which is especially useful during times of market volatility, allows individuals to increase their returns while decreasing their risks. Convertible Arbitrage offers a thorough explanation of this unique investment strategy. Filled with in-depth insights from an expert in the field, this comprehensive guide explores a wide range of convertible topics. Readers will be introduced to a variety of models for convertible analysis, the Greeks, as well as the full range of hedges, including titled and leveraged hedges, as well as swaps, nontraditional hedges, and option hedging. They will also gain a firm understanding of alternative convertible structures, the use of foreign convertibles in hedging\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTrade Review\u003c\/b\u003e\u003cbr\u003e\"...filled with in-depth insights and a wide range of convertible topics, provides a thorough explanation...\" (\u003ci\u003eFinancial World\u003c\/i\u003e, January 2004)\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003eChapter 1. Convertible Arbitrage: An Overview.  \u003cp\u003eConvertible Arbitrage—A Brief History.\u003c\/p\u003e \u003cp\u003eWhy Hedge with Convertibles?\u003c\/p\u003e \u003cp\u003eConvertible Arbitrage Performance.\u003c\/p\u003e \u003cp\u003eWhat About Risks?\u003c\/p\u003e \u003cp\u003eBasics of Convertible Securities.\u003c\/p\u003e \u003cp\u003eRisk-Reward Analysis.\u003c\/p\u003e \u003cp\u003eMethods of Valuation.\u003c\/p\u003e \u003cp\u003eConvertible Profile Graph.\u003c\/p\u003e \u003cp\u003eBasics of Convertible Arbitrage.\u003c\/p\u003e \u003cp\u003eMultiple Convertible Structures.\u003c\/p\u003e \u003cp\u003eAppendix 1.1.\u003c\/p\u003e \u003cp\u003eChapter 2. Valuation.\u003c\/p\u003e \u003cp\u003eConvertible Valuation Models.\u003c\/p\u003e \u003cp\u003eBinomial Option Model.\u003c\/p\u003e \u003cp\u003eChapter 3. The Greeks.\u003c\/p\u003e \u003cp\u003eMeasures of Risk.\u003c\/p\u003e \u003cp\u003eDelta (.).\u003c\/p\u003e \u003cp\u003eGamma (Γ).\u003c\/p\u003e \u003cp\u003eVega (\u003ci\u003ev\u003c\/i\u003e).\u003c\/p\u003e \u003cp\u003eTheta (.).\u003c\/p\u003e \u003cp\u003eRho (ρ).\u003c\/p\u003e \u003cp\u003eMore on Volatility.\u003c\/p\u003e \u003cp\u003eChi (χ).\u003c\/p\u003e \u003cp\u003eOmicron (ο).\u003c\/p\u003e \u003cp\u003eUpsilon ( υ).\u003c\/p\u003e \u003cp\u003ePhi ( φ).\u003c\/p\u003e \u003cp\u003eMandatory Convertible Greeks.\u003c\/p\u003e \u003cp\u003eChapter 4. Credit and Equity Considerations.\u003c\/p\u003e \u003cp\u003eCredit Evaluation.\u003c\/p\u003e \u003cp\u003eCredit Analysis and Equity Market Feedback.\u003c\/p\u003e \u003cp\u003eAsset Value Credit Evaluation.\u003c\/p\u003e \u003cp\u003eCash Flow and Valuing a Business.\u003c\/p\u003e \u003cp\u003eBusiness Valuation Model.\u003c\/p\u003e \u003cp\u003eI. Cash Inflows: Capital Employed.\u003c\/p\u003e \u003cp\u003eII. Cash Outflows: Economic Profit.\u003c\/p\u003e \u003cp\u003eIII. Cash-Inflow Model.\u003c\/p\u003e \u003cp\u003eIV. Intrinsic Business Value.\u003c\/p\u003e \u003cp\u003eChapter 5. Convertible Arbitrage Techniques.\u003c\/p\u003e \u003cp\u003eDelta Neutral Hedge (Long Volatility).\u003c\/p\u003e \u003cp\u003eDelta Estimates versus Theoretical Deltas.\u003c\/p\u003e \u003cp\u003eDynamic Rebalancing of the Delta Neutral Hedge.\u003c\/p\u003e \u003cp\u003eDelta Neutral Hedge on Leverage.\u003c\/p\u003e \u003cp\u003eDelta Hedge—Currency Hedge Overlay.\u003c\/p\u003e \u003cp\u003eAppendix 5.1.\u003c\/p\u003e \u003cp\u003eAppendix 5.2.\u003c\/p\u003e \u003cp\u003eChapter 6. Gamma Hedging.\u003c\/p\u003e \u003cp\u003eCapturing the Gamma in a Convertible Hedge.\u003c\/p\u003e \u003cp\u003eBearish Tilt Gamma Convertible Hedge.\u003c\/p\u003e \u003cp\u003eBearish Gamma Hedge on Leverage.\u003c\/p\u003e \u003cp\u003eThe Gamma Tilt Hedge’s Role in a Market Neutral Portfolio.\u003c\/p\u003e \u003cp\u003eChapter 7. Convertible Option Hedge Techniques.\u003c\/p\u003e \u003cp\u003eCovered or Partially Covered Convertible Call Option Hedge.\u003c\/p\u003e \u003cp\u003eLong Convertible Stock Hedge with Call Write Overlay.\u003c\/p\u003e \u003cp\u003eSynthetic Bond—Long Busted Convertible with Call Write.\u003c\/p\u003e \u003cp\u003eand Long Out-of-the-Money Call for Protection.\u003c\/p\u003e \u003cp\u003eConvertible Stock Hedge—Put Purchase Provides Additional.\u003c\/p\u003e \u003cp\u003eDownside Protection.\u003c\/p\u003e \u003cp\u003eConvertible Hedge Call Write with Protective Long Put.\u003c\/p\u003e \u003cp\u003eMandatory Convertible Preferred—Stock Hedge with Call Write Overlay.\u003c\/p\u003e \u003cp\u003eChapter 8. Convertible Asset Swaps and Credit Default Swaps.\u003c\/p\u003e \u003cp\u003eConvertible Asset Swaps—Extracting Cheap Options from Investment-Grade Convertibles.\u003c\/p\u003e \u003cp\u003eThe Mechanics of Convertible Asset Swapping.\u003c\/p\u003e \u003cp\u003eSwap Hedge Setup.\u003c\/p\u003e \u003cp\u003eConvertible Bond Credit Default Swap—Transfer Credit Risk in a Hedge.\u003c\/p\u003e \u003cp\u003eAppendix 8.1.\u003c\/p\u003e \u003cp\u003eChapter 9. Non-traditional Hedges.\u003c\/p\u003e \u003cp\u003eThe Reverse Hedge.\u003c\/p\u003e \u003cp\u003eCall Option Hedge: Monetization of a Cheap Embedded Call Option.\u003c\/p\u003e \u003cp\u003eStock Hedge to Capture Cheap or Free Put Options.\u003c\/p\u003e \u003cp\u003eConvergence Hedges.\u003c\/p\u003e \u003cp\u003eMerger and Acquisition Risk Arbitrage Trades.\u003c\/p\u003e \u003cp\u003eReset Convertibles (or Death Spiral Convertibles).\u003c\/p\u003e \u003cp\u003eCapital Structure Hedge.\u003c\/p\u003e \u003cp\u003eDistressed Convertible Hedge or Negative Gamma Hedge Opportunities.\u003c\/p\u003e \u003cp\u003eBasket Hedging Equity Delta.\u003c\/p\u003e \u003cp\u003eSynthetic Worksheet Hedge.\u003c\/p\u003e \u003cp\u003eDividend Reduction Convertible Hedge.\u003c\/p\u003e \u003cp\u003eTrading Desk Value Added.\u003c\/p\u003e \u003cp\u003eTrade Execution.\u003c\/p\u003e \u003cp\u003eAppendix 9.1.\u003c\/p\u003e \u003cp\u003eAppendix 9.2.\u003c\/p\u003e \u003cp\u003eTake-Over Risks—An Example.\u003c\/p\u003e \u003cp\u003eChapter 10. Portfolio Risk Management.\u003c\/p\u003e \u003cp\u003eBalance Sheet Leverage.\u003c\/p\u003e \u003cp\u003eScenario Analysis.\u003c\/p\u003e \u003cp\u003eHedging Systematic Risks with Index Options.\u003c\/p\u003e \u003cp\u003eHedging Interest Rate Risk—Yield Curve Shifts.\u003c\/p\u003e \u003cp\u003eHedging Volatility with Volatility Swaps.\u003c\/p\u003e \u003cp\u003eHedging Omicron with Volatility Swaps.\u003c\/p\u003e \u003cp\u003eHedging Omicron with Credit Default Swap Basket or Short Closed End Funds.\u003c\/p\u003e \u003cp\u003eRough Spots for Convertible Arbitrage.\u003c\/p\u003e \u003cp\u003eManaging the Convertible Arbitrage Manager.\u003c\/p\u003e \u003cp\u003eGlossary.\u003c\/p\u003e \u003cp\u003eIndex.\u003c\/p\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default Title","offer_id":49402591248727,"sku":"9780471423614","price":43.5,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0817\/1739\/5799\/files\/9780471423614.jpg?v=1730480883","url":"https:\/\/bookcurl.com\/products\/convertible-arbitrage-9780471423614","provider":"Book Curl","version":"1.0","type":"link"}