capital structure arbitrage
Definition
Investment strategy in which an undervalued security is bought and the same firm's overvalued security is sold. Its objective is to profit from the pricing inefficiency in the issuing firm's capital structure with the expectation that the pricing disparity between the two securities will cancel out (converge).
Popular 'Investing' Terms
capital structure arbitrage in the news
This content can be found on the following page:
http://www.businessdictionary.com/definition/capital-structure-arbitrage.html







