Henderson, Brian J.; Zhao, Bo - In: Journal of Corporate Finance 24 (2014) C, pp. 57-79
investigate the determinants of issuers' choice of concurrent transactions and find that a proxy for capital supply (flows to … convertible bond arbitrage hedge funds) is a significant determinant. Option purchases are more likely when capital supply is low … capital supply is low. Convertible issuers establish lending programs when arbitrageurs likely encounter difficulty shorting …