Arbitrage Trading
In the 1980’s convertible debt always seemed to work out well for issuers and investors.
The market standard convertible was 25 years to maturity and immediately redeemable.
Convertible exchange offers were rare.
As an arbitrage, we exploited the gap between what we thought issuers should do and what they believed they could do.
The Path Function
We believe success for our clients is optimizing the path that begins on the issue date and runs through all the ups and downs to the retirement date.
This perspective took roots beginning in 1982. As we traded convertibles through their entire life cycles, we saw issuers struggled with the challenges of a complex hybrid security that acted like equity one day and debt on another.
Convertible debt cost of capital is a path function, known only at the end date.
Our pattern recognition skills were developed over decades of convertible market activity in arbitrage, underwriting, sales & trading, derivatives, and liability management.
We have been through every market cycle, every bubble and crash, since 1982.
We have traded, underwritten, restructured, or just observed thousands of convertibles over complete life cycles.
Experience has given us an edge in providing advice to our clients.
B. Dyson Capital Advisors seeks to optimize the path for our clients.