High leverage

CFA Level III
#1

Which one has higher leverage: convertible arb or equity market neutral and short bias equity?

Short bias is high vol = so go for low leverage.

But what about others?

Can someone rank them based on their leverage exposure.

#2

Short Bias = Low Leverage
EMN = High Leverage
CB Arb = High Leverage (due to modest returns)

1 Like
#3

Right but can you rank them? Especially between convertible arb and short bias.