Price of 5-year credit default swap (coupon=100) at the close of the market on , at 5:00 PM GMT (source: DataGrapple).
Hellebore Capital (HC) is actively involved in over-the-counter derivatives markets. HC implements strategies using credit default swap (“CDS”) - financial instrument enabling the transfer of an issuer’s credit risk between two investors, as well as equity derivatives through volatility swaps – instruments allowing for pure exposure to the future realized volatility of an underlying asset.
Arbitrage is an investment technique that combines purchases and sales of financial instruments having offsetting risks. The net return on the portfolios thus combined is the arbitrage profit. The performance of arbitrage portfolios is not governed by the performance of the financial markets. Arbitrages are investment processes that use leverage – such investments are restricted to professional investors.
Hellebore Capital (HC) is an Alternative Investment Fund Manager specializing in OTC derivatives arbitrage. The expertise of HC’s managers, as well as its technology, gives HC the ability to invest in its target derivatives markets in Europe, America, Asia and emerging markets. If you would like to learn more about HC and its products, you can create an account online. HC is regulated by the French Authorité des Marchés Financiers (“AMF”).