Another thought. Sometime these convertible bond holder short...

Another thought. Sometime these convertible bond holder short the common to hedge the risk in the convert since borrower may not be so solvent. What if mutual fund that owned vango convert shorted van/cyl common to hedge credit risk onbond, expecting bond never to be paid with cash generated from operations? That smart mutual fund now need to cover their cyl short since cyl not giving up cyl shares in payment on convert. Not so smart. We talking potentially lots of cyl shares that smart mutual fund potentially need to buy if mutual fund hedge van convert by shorting van common at market.