Original link: https://retire50blog.wang/invest/132018%E8%A1%A5%E5%85%855.html
Discount arbitrage 132018 Discount, that is, when the premium rate is negative, you can sell the underlying stock and buy the convertible bond at the same time. Discount arbitrage is completed intraday and is risk-free, provided that there is an underlying stock in hand before the arbitrage. If there is no underlying stock in hand, but it is expected that the discount will still exist the next day, then you can also apply for a debt-to-equity swap before the market closes. If you have the underlying stock in your hand the next day, you can sell the stock to buy the bond. The risk is that the discount disappears the next day. On August 31, the underlying stock rose sharply, and the convertible bond rose…
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