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Where can you buy Reverse Convertibles?
Just read about Reverse Convertible Notes mentioned here http://www.shareworld.co.uk/index.php/forum/forum/...
Where can you buy them? Or are there ETFs?
Thanks Joey, can't go to retail broker because I am one (UK). Any website with details? Just want to check them out, not necessarily wanting to invest.
1 Answer
- JoeyVLv 710 years agoFavorite Answer
1) Reverse converts are rip-offs to individual investors. Banks put them together and take fees of 2% or so off the top. The idea of buying a reverse convert would be laughable in any hedge fund (if we want to sell packages of puts we can do that without paying Citi a fee).
2) All you are doing is selling put options cheap and getting paid for it in an installemnt plan. Why anybody who knows anything would want to do this is beyond me.
3) I doubt that you could price them. Why would you buy anything you can't price? Because the guy selling it to you tells you it is a good price?
4) If you really want to buy them go to any retail broker and they will be very happy to take your money.