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• Citadel redemptions - forced selling in convertibles market? Posted:18/07/2009 10:04 GMT by NeedToKnowNews
  Citadel had shut the door to redemptions back in December and energy market analysts and bankers are now saying the firm could undergo forced selling out of their convert positions to fill redemptions.  Sources tell Need to Know News that Citadel is a huge holder of energy company convertible bonds and forced sales there will result in massive short covering in energy stocks.  There is some notion the hedge fund giant will start allowing redemptions either at the beginning of February or March. Indeed, sources say that Citadel is hardly a multi-strategy fund anymore given so much of their capital, estimated at $25 to $30bln, is tied up in convertible bond arb.  Estimates of Citadel's convertible arb exposure from one player is $15bln. There is some notion the hedge fund giant will start allowing redemptions either at the beginning of February or March 2009.