Global Convertible Investing

Proven convertible investing approaches from a global leader
Global Convertible Investing: The Gabelli Way offers novice and experienced investors alike a comprehensive guide. In-depth analysis takes readers step-by-step through the process of understanding what convertibles are, how to value and price them, how to identify convertibles with potential, and how to profit from them. The proven approaches of the Gabelli Asset Management firm gives readers an inside perspective on option pricing theory, convertible valuation techniques, mandatory convertible securities, and much more. With Global Convertible Investing: The Gabelli Way readers will be able to learn from the firm's proven methods and approaches and apply them to use convertibles as a profitable investment vehicle for themselves."Global Convertible Investing" ist eine verständlich geschriebene Einführung zum Thema wandelbare Wertpapiere. Das Buch eignet sich sowohl für Anfänger als auch für fortgeschrittene Leser. Es behandelt die Grundlagen wandelbarer Wertpapiere, ihre Preisbildung, Bewertung und Arbitrage sowie spezielle Aspekte dieses Marktbereiches. Autor Hartswell Woodson erklärt hier Schritt für Schritt, was wandelbare Wertpapiere sind, wie man sie bewertet, wie man diejenigen mit Gewinnpotential erkennt und wann man sich absichern sollte. Diskutiert werden u.a. bewährte Ansätze und einzigartige Bewertungsmethoden der Gabelli Asset Management - einem führenden Unternehmen der Branche - sowie speziell von Gabelli entwickelte Methoden zur Optionstheorie und zu Hedgingtechniken, die dem Handel mit wandelbaren Wertpapieren eine neue Dimension verleihen. List of Figures

List of Tables

Introduction

Preface

Acknowledgments

PART ONE: THE CONVERTIBLE BASICS

Chapter 1: Anatomy of a Convertible

Chapter 2: Convertible Structures: Let Me Count the Ways

Chapter 3: Understanding the Prospectus: Caveat Emptor

Chapter 4: Global Convertible Markets

Chapter 5: Benchmarks and Performance: Global and Domestic Indices

Chapter 6: Convertible Valuation: A Cultural Overview

PART TWO: CONVERTIBLE PRICING AND VALUATION

Chapter 7: Option Pricing Theory

Chapter 8: Using the Black-Scholes Model to Price a Convertible Bond

Chapter 9: Sensitivity Analysis: The Greeks

Chapter 10: Convertible Bond Pricing: Binomial Trees

Chapter 11: Convertible Bond Pricing: Put plus Stock plus Yield Advantage

PART THREE: CONVERTIBLE HEDGING

Chapter 12: Convertible Arbitrage

Chapter 13: Hedging with Options

Chapter 14: Hedging Interest Rate and Default Risk

Chapter 15: Hedging Currency Risk

PART FOUR: SPECIAL TOPICS

Chapter 16: Mandatory Convertible Securities

Chapter 17: Busted Convertibles: Market Overview

Chapter 18: Investing in Busted Convertibles

Chapter 19: The Investment Decision

Epilogue

Appendix 1: MCS Name Variations

Appendix 2: Useful Internet Sites

Glossary of Notation

Glossary of Terms

Bibliography

Index

HART WOODSON is the Managing Director of Gabelli Asset Management (UK) Ltd. He joined Gabelli (New York) in 1993 as a Senior Vice President and Portfolio Manager. Before joining Gabelli, he worked in Amsterdam, the Netherlands, for ABN AMRO Bank where he was responsible for new issue activities concerning convertible bonds, preferred shares, and warrants in all currencies. Prior to that he worked in New York for AMRO Bank in the Capital Markets Group and as a Credit Analyst for Meridien International Bank. Mr. Woodson graduated from Trinity College, Hartford, with honors in history and international relations. He received his master's degree in international affairs from Columbia University, New York, where he was elected an International Fellow.

PRAISE FOR GLOBAL CONVERTIBLE INVESTING: THE GABELLI WAY

"Hart has just written the best book on our product. Everyone will learn something from this Graham & Dodd for convertibles . . . a must-read for investors."
─Lorraine Lodge Director, Convertible Research, ING Barings

"With the global convertible markets going from strength to strength, Global Convertible Investing is an excellent guide to this exciting asset class."
─Grant Mackie Head of International Convertible Bond Research, Lehman Brothers

"Hart Woodson has written the most definitive work on convertibles to date. Not only does he provide a fully comprehensive study of the technical dynamics that are the essential ingredients of the convertible instrument, he discusses at length the myriad of other considerations that go into making an intelligent investment decision."
─Richard C. Nelson Director, Convertible Research, ABN AMRO

"A pragmatic, plain-English and incredibly comprehensive tutorial of the convertible securities marketplace. A must-read for anyone considering issuing or investing in convertibles."
─Kendrick Wakeman Director, Convertible Research, Wachovia Securities, Inc.

"Easily the most carefully constructed work on the world of convertible bonds. Hart combines the insights of a practitioner with the precision of an academic."
─John Wagner Managing Partner, Camden Asset Management, LP

"This book is an essential guide to convertibles for new as well as existing convertible investors. It is comprehensive, and it reflects Hart's extensive experience as a Global Convertible Portfolio Manager."
─Anand Iyer Group Head, Convertible Research, Morgan Stanley

"All groups of investors will gain from this comprehensive and insightful book."
─James Peattie Head of Equity Derivative Research, Dresdner Klienwort Wasserstein

"The book admirably combines a simple down-to-earth view of convertibles with technical and analytical rigor. Hart Woodson manages to discuss topics interesting to some but intimidating to many, such as convertible pricing models or convertible arbitrage strategies, in a way that makes it easily digestible and fun."
─Katalin Tischhauser Head of International Convertible Research, Goldman Sachs