The most dramatic change to any one strategy in 2004 was in the convertible arbitrage sector.
During March to August, volatility dried up and, coupled with no new issuance, caused US-based funds and most European funds to rethink their future.
New convertibles continue to be issued in 2005 - globally, $5.5bn of convertible bonds were issued in February - but the volume is low, with February's figure the lowest for almost two years.
With equity volatilities depressed, managers expect the lack of
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