What does capital structure arbitrage mean?

capital structure arbitrage meaning in Law Dictionary

a hedge investment strategy it involves structuring investments using different tools regarding one issuer. For example using an extended position when you look at the debt of a company while shorting equity securities of the identical business.

capital structure arbitrage meaning in Business Dictionary

Investment method which an undervalued security is purchased and also the same firm's overvalued safety comes. Its objective is profit from the rates inefficiency inside issuing company's money framework utilizing the hope your pricing disparity amongst the two securities will cancel out (converge).