Whether they use quantitative or qualitative analysis to find these prica ing inefficiencies, managers constantly search for these wrinkles that ... Credit arbitrage can be accomplished by going long the bond while selling short the stock and also using interest rate derivatives or swaps to hedge ... In April 2005 GM bonds were downgraded to junk status while the stock actually rose due to a tena der offer.
|Title||:||The Investor's Guide to Hedge Funds|
|Author||:||Sam Kirschner, Eldon C. Mayer, Lee Kessler|
|Publisher||:||John Wiley & Sons - 2006-11-17|