The Wisdom of Convertible Securities [View article]
quantumonline.com is great for information, but getting the actual quotes is more of a trick because each site/broker seems to have their own way of inputting it. Try, for example, BAC-PL on Yahoo Finance.
The Wisdom of Convertible Securities [View article]
Srdjan, This is part of a series, and in the prior part convertible arb (buy the convert, short the common) was mentioned. This was the explanation of how to value the convertible; I'll have an update posted soon looking at the trade as a whole.
On Jan 06 05:30 PM Srdjan Popovic wrote:
> Correct me if I am wrong, but you can hedge this position by simultaneously > shorting 20 common shares at $14.60 for each convertible share and > de facto making one time payment of $349 for continuous annual distributions > of $72.50. > > For a company of this stature, assuming there is no bankruptcy at > the horizon, in all likelihood it should be a good deal.
The Wisdom of Convertible Securities [View article]
The Wisdom of Convertible Securities [View article]
This is part of a series, and in the prior part convertible arb (buy the convert, short the common) was mentioned. This was the explanation of how to value the convertible; I'll have an update posted soon looking at the trade as a whole.
On Jan 06 05:30 PM Srdjan Popovic wrote:
> Correct me if I am wrong, but you can hedge this position by simultaneously
> shorting 20 common shares at $14.60 for each convertible share and
> de facto making one time payment of $349 for continuous annual distributions
> of $72.50.
>
> For a company of this stature, assuming there is no bankruptcy at
> the horizon, in all likelihood it should be a good deal.