Capital structure arbitrageurs focus on individual issuers. They look for valuation differentials between a company's debt and equity securities.Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price. Arbitrage is the strategy of taking advantage of price differences in different markets for the same asset. Arbitrage is when an asset (stocks, currencies, etc.) is bought in one market and sold in another for a higher price.