The victims of the Parmalat scandal include a number of convertible arbitrage hedge funds, according to a report in today’s Financial Times. The Italian food company had four convertible issues in the marketplace, with a nominal value of Euros 1.2 billion. They have now lost 80-90 per cent of their value, and even funds hedged through credit default swaps will have suffered badly from a decline of that magnitude. The 2004 EuroHedge directory includes 53 funds pursuing convertible arbitrage strategies.
Convertible Arbitrage Hedge Funds Hit By Parmalat Debacle
The victims of the Parmalat scandal include a number of convertible arbitrage hedge funds, according to a report in today's Financial Times. The Italian food company had four convertible issues in the marketplace, with a nominal value of Euros 1.2