3 ms·
It's not really accurate to call it arbitrage if you can't simultaneously short the underlying. You'll be looking at something (imo) not unlike pin risk. And ju
by Blackthorn 10y ago
It's not really accurate to call it arbitrage if you can't simultaneously short the underlying. You'll be looking at something (imo) not unlike pin risk. And just like pin risk...well, it's risky.
JNK wasn't as bad as I remember, according to the stats on Morningstar it had a discount of 1.15% at the worst.
- eru 10y agoI meant in a more general sense: it's closer to something uncertain like statistical arbitrage. Thanks for looking up the numbers. 1.15% seems entirely reasonable compared to having your money locked up.