Reported 8 months ago
AQR Capital Management anticipates the resurgence of convertible arbitrage, a strategy capitalizing on convertible bonds converting into equities, gaining momentum in the current high-interest rate environment. With more companies issuing convertible bonds and opportunities arising from corporate events and maturities, the strategy is now the largest exposure in AQR Diversified Arbitrage Fund, surpassing merger arbitrage. Hedge funds are increasing investments in convertible arbitrage, as evidenced by the recent influx of cash into this niche strategy, which has shown significant growth potential and attractive entry points for arbitrageurs.
Source: YAHOO