Zapped by negative gamma in Japan

It's all in the price

It’s all in the price

Shareholder value is a convertible issue

The convertible bond market seems to be proving the dictum that there’s no such thing as bad publicity except for your own obituary. The prominent role that Japanese bank convertibles played in equity-derivative losses suffered by UBS last year, and which contributed to the bank’s relegation to junior partner in the merger with SBC, has done little to lessen investors’ enthusiasm for the product.

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