I am trying to find the most optimal hedge that protects the portfolio against significant up-moves in interest rates.My thought is Eurodollar futures are probably my best bet...

<t>What is the best strategy hedging interest rate exposure in a portfolio that consists of Converts, Stock- and Bond-Options? With best I mean most cost-effective and one that hedges against rate-increases from 50-150 bps in 2y-7y.Treasuries, swaps or maybe options on either treasuries or Interest ...

Trust is good, control is better (Lenin) It's better to act and repent than not to act and regret (Machiavelli)

<r>yes, I apologise for this...somehow you can't attach Docs in this thread...if you private message me I'll E-mail it to you.Two other points of reference are Number Sixes paper "The Valuation of Convertible Bonds With Credit Risk" <URL url="http://www.scicom.uwaterloo.ca/~paforsyt/convert.pdfas">h...

A short intro to this can be found in Mark Davis article "Taking convertibles for a spin", Derivatives eek V9, May 2000.I attached the file. If you need something more basic, let me know. Apologies for the format.