Fixed Income Hedge

Fixed Income Trading involves strategies with alternative approaches to traditional fixed income investments. Managers seek to capture profit through opportunities with small pricing anomalies, while maintaining a minimum exposure to interest rates and other market risks. This strategy typically utilizes a varying amount of leverage, and investments may be either long or short.

Capital Structure Arbitrage: A form of arbitrage which exploits pricing discrepancies of securities within a company's capital structure such as senior debt versus subordinated debt.