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Article: Hedge Funds Ride With Convertibles.
- Article from:
- Traders
- Article date:
- August 1, 2000
- Author:
CopyrightCOPYRIGHT 2000 Thomson Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Hedge funds account for an ever-increasing portion of trading business for Wall Street's biggest firms.
But while equity desks - and especially their customers - may abhor the hedge funds for their flipping and short-selling, the convertibles desks love them. Hedge funds are considered an important source of liquidity not only by Street convertible traders, but also by their traditional pension fund and mutual fund customers.
"The relationship is very affable between hedge funds and sell-side firms," said Steve Barral, who heads the convertibles desk at J.P. Morgan. In recent years, the hedge fund community has come to dominate convertibles, particularly ...