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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: The Perfect Hedge who wrote (26885)3/21/1998 5:55:00 PM
From: Knighty Tin  Read Replies (1) | Respond to of 132070
 
GD, There is no reason to cover a convertible arb unless the price relationship changes between the two securities. The buyer locks in the yield on the convert, then gets an interest rebate on the short stock, and is market/sector/issue neutral. It beats clipping coupons if you put it on at a good price. Of course, you and I were not invited to buy any of the convert. -g- Heaven forbid we should get an investment layup. MB