Convertibles: Back in the black.
Convertible arbitrage strategies rebounded sharply in April, with many funds pulling back from big losses last year, when the dramatic collapse of Lehman Brothers froze the credit markets and led to government bans on short selling.
For the month, the Absolute Return Convertible & Equity Arbitrage Index gained 4.32% and is well ahead of all other strategies for the year, netting 14.21% for the year through April. As a whole, convertible funds lost 30.89% in 2008.
In the first third of the year, conditions perked up for convertible players. As Credit Suisse pointed out in recent research, improvement in