Illustrative course outlines

At OTC we believe in tailoring our courses to meet each client’s specific requirements.  The illustrative course outline below gives an indication of the type of course content that we’ve been asked to deliver. For more information call us on +44 20 7700 3330 or email

Strategy & Leadership Finance & Commerce Investment Banking

Convertible bonds, CB arbitrage and capital structure arbitrage

What is covered?

This course offers an overview of convertible bonds and when and how they are traded in the market.  Following a brief analysis of what makes a convertible we will move on to look at valuation, greeks and arbitrage using treasuries and the CDS market.

Who will benefit?

Anyone interested in the convertible bond market.  Some prior knowledge of options is assumed as the course moves on the arbitrage using option greeks.

Course content            

What are convertibles?
    • Bonds with equity upside
    • Assessing intrinsic and option value
    • Types of convertible bond
    • CB market participants
    • CB market statistics
The attractions of convertibles
    • Being “paid to wait”
Convertible bond case study
    • The issuance process
    • Subsequent trading
Convertible bond arbitrage
    • Hedging the equity risk
    • Convertible Greeks
    • Busted convertibles
Capital structure arbitrage
    • Trading different elements of the company’s capital
    • A bond is a Treasury + short CDS
    • A convertible is a Treasury + short CDS + long equity option


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