Looking for value
Taiwan’s convertible bond market has rocketed this year, and with it, the asset swap market has thrived as hedge funds look to strip out the under-priced equity option. Nick Sawyer reports
Taiwan’s convertible bond (CB) market has arguably been one of the most compelling stories of the year in Asia. While equity-linked deals have been few and far between elsewhere in the region, Taiwan has led the way with over $2.2 billion in issuance so far this year. And this surge in CB issuance has attracted the attention of hedge funds, eager to exploit arbitrage opportunities by stripping out the embedded equity option and in the process, earning an often enticing return. In
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