Alternative Investments

Relative-Value Strategy

Definition

What is Relative-Value Strategy?

A strategy seeking to profit from price differences between related securities while limiting broad market exposure.

Example in practice

The fund trades the spread between two similar bonds.

Keep learning

A company that finances producers in exchange for a percentage of revenue or output.

A financing arrangement granting the investor the right to buy part of future production at a predetermined price.

Non-bank lending to privately held companies or assets.

An investment combining debt and derivatives to create a defined payoff.

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