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Phil,
Arbitraging convertibles is mathmatically elaborate. The big
investment banks run sophistiticated models to do that. Some models
are commercially available.
The arbitrage opportunities are certainly there but you need good
execution capibilities across several markets and models that work.
If you come up with something useful you better apply for job at one
of the big the houses since the capital you need is large and the
salary you will receive there certainly exceeds the returns you can
achieve by doing it yourself.
Gerrit
> I've just heard about a hedging technique that buys convertible bonds
> and shorts the underlying stock. I'd be interested to hear from anyone
> who has experience, good or bad, with this type of trading.
>
> -Phil in KC
>
>
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