MBRM offers options on convertible bonds

"The convertible bond market has had a record year so far in terms of issuance and interest from the market as a whole," claimed MBRM managing director Mamdouh Barakat. "As convertible bonds move into the mainstream, so interest naturally increases in structuring and risk-managing effective hedges and also exploiting arbitrage opportunities."

Barakat believes the ability to buy and sell options on convertibles where the price is quoted as a fixed credit spread will enhance activity, and is analagous with the use of options in hedge fund portfolios, which have seen strong growth this year.

The firm will not charge Universal Convertible Add-in users for the extra functionality. New purchasers of Universal Convertible Add-ins are charged $4,799.

MBRM claims to have more than 30,000 users wordwide.

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