In Hedge Funds
Some hedge funds engage principally in arbitrage strategies in the global equity and corporate debt markets by taking advantage of mispricings between two related and often correlated securities. Typical arbitrage strategies include: fixed income arbitrage, convertible bond arbitrage, statistical arbitrage, and derivative arbitrage.
Read more about this topic: Relative Value (economics)
Famous quotes containing the word hedge:
“Take the instant way,
For honor travels in a strait so narrow,
Where one but goes abreast. Keep then the path,
For emulation hath a thousand sons
That one by one pursue. If you give way,
Or hedge aside from the direct forthright,
Like to an entered tide, they all rush by
And leave you hindmost.”
—William Shakespeare (1564–1616)