Tagged: Jeffrey Steven Drobny

What is Fixed-Income Arbitrage?

fixed-income arbitrage


Longtime Minneapolis resident Jeffrey Steven Drobny splits his time between MN and Scottsdale, AZ. Jeff Drobny has spent his career in the financial services industry providing fixed-income investment strategies to his clients. Jeff Drobny’s two decades with Cargill taught him methods of isolating desired risks and mitigating undesired risks. One of the strategies he has employed to make a return on capital over his career is fixed-income arbitrage.

Fixed-income arbitrage relies on the concept of arbitrage or the fact that different segments of a market may value a product differently. Thus, one can buy the product where its price is lower and sell it where it is higher, thereby making a profit. In modern financial markets, arbitrage also can be the act of borrowing an asset at one rate of interest and then investing it at a higher rate of return.

Fixed-income arbitrage relies on financial instruments that guarantee a stream of income, examples of these are bonds issued by institutions, and credit default swaps. Credit default swaps are essentially insurance on a specific risk, such as the risk of a corporation defaulting. In the most common form of fixed-income arbitrage, the investor makes opposing bets on the value of a bond and the bond’s credit default swap, betting for example that the bond value is lower than market price, and credit default swap value is higher.


Getting to Know the Wine Regions of Italy



Chief investment officer and managing partner Jeffrey Steven Drobny serves the Geneva, Switzerland, and Minneapolis, MN-based global alternative investment firm Garda Capital Partners by setting the tone for its strategic direction. Jeff Drobny devoted the previous two decades of his career to overseeing fixed-income investment strategies at Cargill Inc./Black River Asset Management.

In his personal time, Jeff Drobny is an enthusiast for Italy’s history, culture, and wines. Any traveler to Italy will enjoy its rich and age-old tradition of winemaking, with a wide range of distinctive wine-producing regions. Experts have identified some 350 official varieties of Italian wines, although many believe there are actually thousands.

The country’s dozens of wine regions include Lombardy in the north, which produces chardonnay, pinot noir, and other varieties that include the high-altitude Valtellina red wines. The varieties produced in the Veneto region include merlot and the sparkling prosecco.

In the central part of the country, Tuscany offers cabernet sauvignon, the red Sangiovese (meaning “Jove’s blood”), and so many other varieties that many oenophiles consider the region a favorite. Italy’s central area is also home to Umbrian wines such as the white Trebbiano and Grechetto. Winemaking in Calabria in southern Italy is dominated by the production of white Greco and red Gaglioppo, both wines of Greek provenance.