Rally under way for battered CB arbitrage


A big rally in the convertible bond market saw many battered CB arb funds posting gains after a dismal last few months, with the EuroHedge median for the sector showing a gain of 2.74%.

CQS was up by almost 5%, while JB Convertible Bond gained 6.2% and Aviva's Convertible Bond Arbitrage strategy was up by 5.5%.

Sark rose 1.94% in January, while GLG Global Convertible Bond gained 1.73% and Acropole Convertible Arbitrage put on 2.74%. INTL Consilium Convertible Arbitrage Fund posted a 1.27% gain, while Insinger de Beaufort Global Convertible rose 0.84%.