all good.
if you short some stock it reduces the amount of equity you're effectively putting into the bond.
say you buy $10m worth of CBs and short sell $5m (delta hedge 50%)
Then your net investment is $5m
Say interest on the CB is 3% and the stock borrow costs are 1%.
Returns would be:
($10m x 3% - $5m x 1%) = $2.5k / $5m = 5% vs the 3% on the bond.
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Last
$4.52 |
Change
0.110(2.49%) |
Mkt cap ! $3.809B | |||
| Open | High | Low | Value | Volume |
| $4.42 | $4.55 | $4.40 | $12.18M | 2.706M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 4499 | $4.52 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $4.54 | 4138 | 3 |
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| Last trade - 16.19pm 08/08/2025 (20 minute delay) ? |
| NHC (ASX) Chart |