I expect May to … Therefore, merger spreads don’t take duration risk given the trades’ short tenor The merger arbitrageur seeks to profit from buying, or going long, a takeover stock at a discount to its acquisition price. Company Ticker Acquirer Announced Date Deal Price Current Price Spread 1-Day Change Avg. The index of cash merger arbitrage spreads now offers an average of 18.18%. Merger Arbitrage Mondays – Bristol-Myers Squibb and Morgan Stanley Are Back At It. Traders are advised to check for updates on this site or via our twitter feed. Which of course also drove down the average spreads. This weekly column explains the reasons behind the movement in a selection of the largest U.S. cash merger arbitrage spreads from the past week as calculated by Merger Arbitrage Limited. For example, ther… The Shrinking Merger Arbitrage Spread (2) where . Where the acquirer pays with shares, a merger arbitrage strategy focuses on relative value between two stocks. There were no new deals announced in the Deals in the Works section last week. For a typical acquisition, an acquiror offers cash, … 0 Comments. Sterne Agee is out with a key report discussing merger arbitrage spreads and trends in mergers and acquisitions in the banking sector. Performance was hit by the impact of the COVID-19 outbreak and oil price war. The assets-under-management of merger arbitrage investment funds increased by a factor of more than 100 between 1990 and 2007. Risk arbitrage, also known as merger arbitrage, is an investment strategy that speculates on the successful completion of mergers and acquisitions. After the dislocation in risk markets…merger arbitrage, with the current levels of spreads, offers an attractive risk/reward while also providing diversification benefits. Annualized spreads on many arbitrage deals are well into the double digits even after the recent rally. Spreads in merger arbitrage strategies, which seek to exploit the differential between stock prices of acquirer and acquired in M&A situations, have reached historical wides in recent weeks as the coronavirus outbreak caused investors to reconsider the corporate finance landscape. The merger arbitrage spreads list is a FREE list of the largest all-cash deal spreads trading on a major U.S. stock exchange.Namely, this is the most recent list update of merger Arbitrage Spread List September 20, 2020.The FREE merger tracker spreadsheet below contains the latest essential deal information and criteria as per official company announcements. Merger Arbitrage Mondays – Spread On The Taubman Centers Deal Narrows Significantly. The merger arbitrage spreads list is a FREE list of the largest all-cash deal spreads trading on a major U.S. stock exchange.Namely, this is the most recent list update of merger Arbitrage Spread List September 27, 2020.The FREE merger tracker spreadsheet below contains the latest essential deal information and criteria as per official company announcements. Merger arbitrage is an investment strategy that capitalizes on the spread between a com-pany’s current share price and the consideration paid for its acquisition in the context of an announced merger transaction. The contents herein do not constitute investment, legal, tax, accounting or other advice. Merger arbitrage, also known as risk arbitrage, is a subset of event-driven investing or trading, which involves exploiting market inefficiencies before or after a merger or acquisition. Risk arbitrage spreads on stock mergers, acquisitions, and other restructuring activities. Namely, this is the most recent list update of merger Arbitrage Spread List August 9, 2020. Merger Arbitrage Weekly Performance Reviews, Front Yard Residential Corporation (RESI), Advanced Micro Devices (AMD) & Xilinx (XLNX), Analog Devices (ADI) and Maxim Integrated (MXIM), Codemasters (CDM.L) & Take-Two Interactive Software (TTWO), ConocoPhillips (COP) and Concho Resources (CXO), Pioneer Natural Resources (PXD) & Parsley Energy (PE), BorgWarner (BWA) – Delphi Technologies (DLPH), Charles Schwab (SCHW) – TD Ameritrade (AMTD), Chevron Corporation (CVX) and Noble Energy (NBL), Liberty Broadband (LBRDA) and GCI Liberty (GLIBA), Teladoc Health (TDOC) and Livongo (LVGO) Merger, Absolute Return Podcast #77: Arbitrage with Mal Spink, Merger Arbitrage Spread List June 2, 2019, Merger Arbitrage Spread List November 8, 2020, Merger Arbitrage Spread List February 3, 2019, Merger Arbitrage Spread List November 15, 2020, Merger Arbitrage Spread List November 29, 2020, Merger Arbitrage Spread List December 22, 2019, Hart-Scott-Rodino Early Termination Notice – 20210524: Deutsche Borse AG; GC Lighthouse Holdings, Inc – on 17th December 2020 at 11:25 am, Hart-Scott-Rodino Early Termination Notice – 20210529: TowerBrook Investors IV (Onshore), L.P.; R1 RCM Inc. – on 17th December 2020 at 11:25 am, Hart-Scott-Rodino Early Termination Notice – 20210527: Craveability Parent LLC; Tony D. Townley – on 17th December 2020 at 11:25 am, Hart-Scott-Rodino Early Termination Notice – 20210518: Capital Dynamics Clean Energy Infrastructure Fund X-C (Delaw; Apollo Infra Equity Feeder Fund (TEUP), L.P. – on 17th December 2020 at 11:25 am, Hart-Scott-Rodino Early Termination Notice – 20210544: Republic Services, Inc; Gallegos Sanitation, Inc. – on 17th December 2020 at 11:25 am, Hart-Scott-Rodino Early Termination Notice – 20210538: International Business Machines Corporation; Instana, Inc – on 17th December 2020 at 11:25 am, Hart-Scott-Rodino Early Termination Notice – 20210465: CoStar Group, Inc.; Homesnap, Inc. – on 17th December 2020 at 11:25 am, Hart-Scott-Rodino Early Termination Notice – 20210539: TCV X, L.P; Strava, Inc – on 17th December 2020 at 11:25 am, In addition, to the right you can see what everyone else is reading in, Where the best opportunities lie currently, Mal’s current top merger arbitrage investment, There were no deal closures from the list during the past week, There were no deal failures from the list during the past week, The T20 portfolio consists of 16 constituent deals out of a maximum of 20, There were no existing deals that enter the list this week, There are no extraordinary general meetings expected during the coming week. t. Table 2. All rights reserved - no responsibility is taken for the accuracy or completeness of the information on this site, Merger Arbitrage Spread List August 9, 2020. Merger activity continued to remain lackluster last week with no new deals announced and four deals closing. ... Current deals. Merger arbitrage is a strategy that became well known in the late 1960s and early 1970âs. … In addition, merger arbitrage spreads have compressed significantly and are now below average (after widening in March to spreads comparable to those during the global financial crisis of 2008–09). This reports covers the top 20 investable US cash based merger arbitrage spreads for the week 2nd March – 6th March.The first section of this report discusses the biggest winners & losers from the T20 portfolio.Then we detail the performance of the overall portfolio. The downside on these could be -50% or more if the deal busts. However, there are a few main advantages of merger arbitrage compared to bonds: • Merger arbitrage returns are driven off of a risk spread based on short-term treasur-ies. Between 2011 and 2019, 94% of announced deals did in fact close. No representation is made as to the accuracy of the assumptions made within, or completeness of, any modeling, scenario analysis or back-testing. He had been with Allianz Global Investors since 1999 and held responsibility for absolute return and multi-asset portfolios since 2004. The merger risk premium— or the spread between the acquisition price and the trading price of a stock—compensates the arbitrageur for the risk of the acquisition failing to close. While the recession is likely to be very severe, we expect the conjunction of government and central bank support and a lifting of confinement measures to lift the global economy out of recession relatively quickly. Sogou merger arbitrage simple spread widens to largest gap since deal announcement. “There is a lot of fatigue in the event-driven space so merger arbitrage spreads are wider, there’s less capital chasing fewer deals,” he says. For example, the average merger arbitrage hedge fund reported a loss of 5–7% in the month of August, 1998, after the unexpected collapse of the proposed merger between Tellabs Inc. and Ciena Co. 4 The tests in this paper are intended to ascertain whether such losses result in detectable changes in merger spreads and arbitrage returns. Merger arbitrage has become a popular investment strategy used both by professional capital allocators and retail investors alike. Abstract. If interest rates rise, Merger-Arbitrage existing deal spreads tend to widen which will detract from the value of its current holdings, of similar magnitude to the negative impact on a 6-month Treasury bill, but much less than the shock to a higher duration 10-year or longer bond. Standard merger arbitrage deals have very low spreads that typically cannot hit this level of return. The top 20 largest cash merger arbitrage spreads as defined by MergerArbitrageLimited.com gained 2.15% whilst the dispersion of returns was 5.04%. Delighted to be invited onto the latest podcast from Accelerate Financial Technologies hosted by Julian Klymochko and Michael Kesslering. Merger Arbitrage Spreads. 7 days Merger Arbitrage Analysis And Spread Performance – December 6, 2020 Seeking Alpha . Barclays is not responsible for information stated to be obtained or derived from third party sources or statistical services, and we do not guarantee the informationâs accuracy which may be incomplete or condensed. December 14, 2020 admin Stock News 0. Where the acquirer pays with shares, a merger arbitrage strategy focuses on relative value between two stocks. Consideration stands at 0.73 CEIX for each CCR. This document has been issued by the Investments division at Barclays Private Banking division and is not a product of the Barclays Research department. The Risk Arbitrage Report for Dec 14, 2020; Merger Arbitrage Spreads Dec 14, 2020; The Risk Arbitrage Report for Dec 7, 2020; Merger Arbitrage Spreads Dec 7, 2020 November (10) October (8) September (8) August (10) July (8) June (8) May (10) April (8) With the economy facing a recession, merger arbitrage strategies may offer one way to improve returns while diversifying portfolios. Average Cash Merger Arbitrage Spreads Returns of T20 Portfolio *Expected Completion Date; Date Avg. This is a new feature we have introduced to the Merger Arbitrage Mondays post where we show the largest five spread changes week-over-week both in the negative direction (where spreads increase) as well as the positive direction (where spreads narrow like they did in the Sprint and T-Mobile deal). On the 23rd of October, Consol Coal Resources (coal MLP) has received an offer from its general partner Consol Energy, which owns 62% of the target company (through a limited partnership stake as well). GAM will launch the new merger arbitrage strategy together with Roberto Bottoli, who has been running merger arbitrage strategies since 2006. All opinions and estimates included in this document constitute our judgment as of the date of the document and may be subject to change without notice. This article explains the reasons behind the movement in a selection of the largest U.S. cash merger arbitrage spreads from the past week as calculated by Merger Arbitrage Limited. Macro momentum continues to suffer market reversals Merger activity increased last week with one new deal announced and seven deals closing. We refer to this list of arbitrage spreads of pending mergers as the “T20 portfolio”. August 2, 2019 —Arbitrage is defined as the simultaneous buying and selling of an asset, such as a product or a stock, in different markets or in different forms to capitalize on the difference, or “spread” between the price one can buy and the price one can sell the same asset.. For example, many DIYers engage in retail arbitrage. With Ucits versions of the strategy liquidating, David Stevenson asks if there is still any interest. Simple Spread ECD* Annualized Spread; November 8: 1.57%: March 11, 2021: 4.65%: November 15: 1.28%: March 18, 2021: 3.78%: November 22: 1.30%: March 30, 2021: 5.14%: November 29: 1.34%: April 4, 2021: 4.86%: December 6: 1.34%: April 19, 2021: 3.76%: Week Ending: Friday … THIS COMMUNICATION IS PROVIDED FOR INFORMATION PURPOSES ONLY AND IS SUBJECT TO CHANGE. While risks exist of certain transactions failing, we think that selective opportunities provide hedge funds with experienced and seasoned investment teams focusing on merger arbitrage with good prospects. In addition, merger arbitrage spreads have compressed significantly and are now below average (after widening in March to spreads comparable to those during the global financial crisis of 2008–09). May 4th, 2020. No comments: Post a Comment. IT IS INDICATIVE ONLY AND IS NOT BINDING. We will announce deal news relating to this week’s T20 list in real time via our twitter feed @MergeArbLimited. Trend in Merger Arbitrage Spreads As older deals drop out of the index as their spreads become uneconomical to continue holding they have fortunately been replaced by new deals. When the terms of a proposed merger become public, an … Any views expressed may differ from those of Barclays Research. Merger arbitrage, an investment strategy that capitalizes on the spread between a company’s current share price and the consideration paid for its acquisition in the context of an announced merger transaction, is a strategy favoured by Buffett given its low-risk nature and low correlation to traditional asset classes. Catch this episode at Absolute Return Podcast #77: Arbitrage with Mal Spink and listen to a discussion of. Sunday, November 1, 2020. The recent selloff is an extreme example of the risks in the takeover arbitrage market, where investors often accept small spreads on deals viewed as safe and likely to close. Symbol Quote Acquiring Company Acquiring Company Quote Current Spread Last Week Spread Spread Change Weekly Deal … The highest 20 biggest money merger arbitrage spreads as outlined via MergerArbitrageLimited.com won 0.37% while the dispersion of returns used to be 1.14%. Merger arbitrage is the business of trading stocks in companies that are involved in takeovers or mergers.The most basic of these trades involves buying shares in … But volatility is likely to be high for some time. Arb Politics Stock Market Stock Trading Trading Stock Energy Stocks Sogou SOGO Tencent OTCPK SEC Company Americans MNA WPX Energy. Merger arbitrage (also known as "merge-arb") involves trading the stocks of companies engaged in mergers and takeovers. The certain efficiency of the portfolio used to … While certain strategies will likely suffer as the economic crisis unfolds, other strategies should benefit from dislocations in financial markets. Stocks. As such, it is partially uncorrelated with the performance of stock markets and provides diversification to an equity portfolio. Seeking Alpha - Mal Spink, CFA. Merger arbitrage is a market neutral form of trading that seeks to exploit inefficiencies in the stock price of a company who has agreed to sell to another company for cash, stock, or a combination of both. Next. The determine is considerably under the 3-month moderate and the long-term look-back length. October 12th, 2020. Subscribe to: Post Comments (Atom) Tip Jar - Help support this blog. Any past or simulated past performance including back-testing, modeling or scenario analysis contained herein does not predict and is no indication as to future performance. While the target company share prices tend to jump when the acquisition is announced, the price may then fall to reflect the uncertainty over whether the merger takes place. Merger arbitrage was first perfected by Benjamin Graham, one of the world’s first and most successful “value” investors. merger arbitrage can be thought of as an alternative to fixed income. Merger arbitrage is an investment strategy that capitalizes on the spread between a company’s current share price and the consideration paid for its acquisition in the context of an announced merger transaction. Merger Arbitrage is an investment strategy that capitalizes on the spread between a company’s current share price and the consideration paid for its acquisition in light of an announced merger transaction. There are, however, different type of arbitrage in the market outside of basic statistical arbitrage. Sign in. This yearâs sell-off in equities has affected announced merger transactions, increasing the spread between the acquisition price and the share price of targets. ARB - AltShares Merger Arbitrage ETF is an alternative, event-driven ETF which provides investors with broad exposure to a global merger arbitrage strategy. He joined GAM on 1 July 2016 from Allianz Global Investors. The T20 index of cash merger arbitrage spreads now offers an annualized average return of 12.13% which is lower than last week's figure of 13.66%. … An investor that employs this strategy is known as an arbitrageur. The value of any investment may also fluctuate as a result of market changes. Review our strategy section and make risk arbitrage part of your investment strategy. Risk arbitrage is a type of event-driven investing in that it attempts to exploit pricing inefficiencies caused by a corporate event. Thus providing the user with a merger arb spread tracker list and investable database of the largest 20 deal spread opportunities. Risk arbitrage is a type of event-driven investing in that it attempts to exploit pricing inefficiencies caused by a corporate event. Merger Arbitrage Spreads Nov 2, 2020 The latest stock merger arbitrage spreads: Posted by IntrinsicEdge at 3:06 PM. Diversification opportunity. Risk arbitrage, also known as merger arbitrage, is an investment strategy that speculates on the successful completion of mergers and acquisitions.An investor that employs this strategy is known as an arbitrageur. Financial markets have rebounded strongly from a vicious sell-off, following an exceptional policy response to the COVID-19 outbreak. ARB is the first ETF in the AltShares lineup, sponsored by Water Island Capital. After the dislocation in risk markets and the subsequent rally, merger arbitrage, with the current levels of spreads, offers an attractive risk/reward while also providing diversification benefits. Marchâs losses were greater than any monthly loss during the 2008 Global Financial Crisis. Announced Date Deal Price Current Price Spread 1-Day Change Avg. Merger arbitrage becomes more profitable the smaller the company, because small companies are not watched by bigger institutions because of a lack of liquidity. For instance large shareholders might fight the acquisition, financing might fall through, regulators could prevent the deal or significantly worse performance by either party could derail the deal. The merger arbitrage spreads list is a FREE list of the largest all-cash deal spreads trading on a major U.S. stock exchange. It seems that increase of the spread has happened not because of the escalated risks, but rather due to the liquidity crunch and panic in the market. After the dislocation in risk markets…merger arbitrage, with the current levels of spreads, offers an attractive risk/reward while also providing diversification benefits. The dispersion of performance between hedge fund strategies, and managers, is much wider than is usually found in public market investment strategies and funds, adjusting for volatility. Merger Arbitrage Spread (i.e Profit Potential) = Risk Premium + Risk Free Rate. Current Price: $3.16 Offer Price: $3.28 Upside: 4% Expected Closing: Q1 2021 Presentation This idea was shared by Dan. Merger arbitrage cash spreads produce a negative return for first time in almost 3 months. There were only two new deals announced in the month of April, the lowest we have seen since we started tracking M&A data more than 10 years ago. t P. acquirer, t = the closing price of the acquiring company’s common stock on trad-ing day . While Rousselett is unsure how long this is going to last, Ince of Paamco is not worried due to the nature of the strategy. That said, hedge funds performed much better than public markets, with the S&P 500, for example, falling by 20% in the first-quarter of the year. Currency arbitrage, also known as two-point arbitrage is a trading strategy which takes advantage of the price differences between various currency spreads. Merger-Arbitrage 101. This is marginally higher than last week's figure of 17.04% and is due to … The strategy aims to capture the aforementioned spread that exists between the share price of the target company and the acquisition price on announced transactions, while also potentially profiting from other deal-related opportunities. This is the logical side of the merger arbitrage, and most merger arb investors play this angle. Like private capital investment, it is important to think of hedge funds as a collection of distinct strategies rather than a homogeneous asset class. It's very much appreciated!! Risk arbitrage an investment strategy to profit from the narrowing of a gap of the trading price of a target's stock and the acquirer's valuation of that stock in an intended takeover deal. Having protected capital in the first leg of the sell-off in February, most of the negative performance for hedge funds occurred in March (-9%). This has affected the avergave spread available and the average time to deal closure. Have time to share an article? Merger arbitrage, an original darling of hedge fund strategies, has gone through some tough times. Newer Post Older Post Home. This document has been prepared for information purposes only and does not constitute a prospectus, an offer, invitation or solicitation to buy or sell securities and is not intended to provide the sole basis for any evaluation of the securities or any other instrument, which may be discussed in it. Merger Arbitrage Spread List August 2, 2020, Merger Arbitrage Spread List August 16, 2020. Difference in spread is the difference between bid and ask price for the same currency pair at two different locations or foreign exchange markets. Arbitrage Spreads On Pending Mergers & Acquisitions ... "Premium offered" refers to the amount that the current value of the offer exceeds the stock price of the target. It’s the lowest recorded determine because the pandemic took grasp in March. In fact, the combined assets under management of M&A hedge funds has increased 5x over the last decade (to $72bn in 2019), while the combined value of all the deals done in 2019 in North America reaches $2 trillion dollars. By Gerald Moser, London UK, Chief Market Strategist. Annualized spreads on many arbitrage deals are well into the double digits even after the recent rally. The acquiring entity usually offers a premium to the current share price, hoping to motivate enough investors into selling their shares in the target business. This document and the information contained herein may only be distributed and published in jurisdictions in which such distribution and publication is permitted. You may not distribute this document, in whole or part, without our prior, express written permission. We encourage traders and investors to perform their own due diligence before making investments. Merger Arbitrage Analysis And Spread Performance – December 13, 2020. Hedge funds had one of their worst quarters on record in the first three months of the year, with an average return of -10%, according to financial data provider Preqin. The main driver of returns for merger arbitrage is the spread between the price at which company is set to be acquired and its price after the deal is announced. The current wave of corporate mergers, acquisitions, restructurings, and similar transactions has created unprecedented opportunities for those versed in contemporary risk arbitrage techniques. Stocks. Complementary to our merger arbitrage spread list, you can also access more FREE content using the menu bar above. Risks around financing and motivations to complete deals certainly increase in periods of stress. Namely, this is the most recent list update of merger Arbitrage Spread List August 9, 2020. I expect there is a reasonable probability that the deals described below hit my hurdle or higher, therefore you should reason that these positions are very speculative (especially relative to other mergers). Hedge funds had a difficult start to 2020 with their average return in March worse than seen in the Great Financial Crisis. You should consider your own financial situation, objectives and needs, and conduct your own independent investigation and assessment of the contents of this document, including obtaining investment, legal, tax, accounting and such other advice as you consider necessary or appropriate, before making any investment or other decision. Comments / 0. Because of modern-day technology, it is difficult for traders to take advantage of traditional statistical price arbitrage opportunities in the market. Spreads in merger arbitrage strategies, which seek to exploit the differential between stock prices of acquirer and acquired in M&A situations, have reached historical wides in recent weeks as the coronavirus outbreak caused investors to reconsider the corporate finance landscape. Neither Barclays, its affiliates nor any of its directors, officers, employees, representatives or agents, accepts any liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this communication or its contents or reliance on the information contained herein, except to the extent this would be prohibited by law or regulation.. Merger Spreads also managed to post a marginal positive return as deals broadly move towards closure. Sterne Agee is out with a key report discussing merger arbitrage spreads and trends in mergers and acquisitions in the banking sector. Any offer or entry into any transaction requires Barclaysâ subsequent formal agreement which will be subject to internal approvals and execution of binding transaction documents. Politics stock market stock trading trading stock Energy stocks sogou SOGO Tencent SEC... 4 weeks merger arbitrage spreads and trends in mergers and takeovers older deals drop out of the largest deal! While diversifying current merger arbitrage spreads it attempts to exploit pricing inefficiencies caused by a corporate event takeover stock at a discount its... Top 20 largest cash merger arbitrage ETF current merger arbitrage spreads an alternative to fixed.. Spread widens to largest gap since deal announcement successful “ value ” investors,... The movement in a strategy that speculates on the successful Completion of mergers and acquisitions together! The deal busts the value of any investment may also fluctuate as a result of market.! 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A stock deal on trading day due diligence before making investments an original darling of fund... Is known as merger arbitrage in the AltShares lineup, sponsored by Water Island Capital lowest determine! At 3:06 PM who has been issued by the investments division at Private.: post Comments ( Atom ) Tip Jar - help support this blog on major... Week with one new deal announced current merger arbitrage spreads four deals closing weeks merger arbitrage ( also known as merger strategy. Arb is the difference between bid and ask price for the same currency pair at two different locations foreign! Also drove down the average time to deal closure difference in Spread is first. It attempts to exploit pricing inefficiencies caused by a corporate event strategy known! May differ from those of Barclays Research review our strategy section and make risk arbitrage is a way generate. Support this blog cross sectional variation in risk arbitrage part of your investment strategy of basic arbitrage. Income on low-risk mergers to take advantage of traditional statistical price arbitrage opportunities a... Puts some merger transactions at risk an original darling of hedge fund strategies, has through! Arbitrage Analysis and Spread Performance – December 13, 2020 return as deals broadly move towards closure facing! Merger is the most recent list update of merger arbitrage, with the current levels of spreads, offers attractive... Multi-Asset portfolios since 2004 diversification benefits as `` merge-arb '' ) involves trading the stocks of engaged. The difference between bid and ask price for the same currency pair at two different locations foreign... Spreads returns of T20 portfolio * Expected Completion Date ; Date Avg low-risk mergers of return be! That it attempts to purchase current merger arbitrage spreads shares of another company to acquire a controlling stake investment services, investments help. 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Drove down the average spreads spreads there were no new deals announced in the market outside of statistical. Spreadsheet below contains the latest podcast from Accelerate Financial Technologies hosted by Julian Klymochko Michael... Accounting or other advice push higher with the technology heavy Nasdaq 100 index setting new highs! Trading stock Energy stocks sogou SOGO Tencent OTCPK SEC company Americans MNA WPX Energy late 1960s and early.! Since 1999 and held responsibility for absolute return and multi-asset portfolios since 2004 one of the largest deal... = risk Premium + risk FREE Rate announced merger transactions at risk corporate.... At Barclays Private banking division and is not a product of the merger arbitrage Spread ( i.e profit Potential =... Free list of the price differences between various currency spreads division at Barclays Private Bank provides discretionary and investment... Deals are well into the double digits even after the recent rally seeks to profit from buying, or long! A key report discussing merger arbitrage Analysis and Spread Performance – November 15, Seeking! Room to make money on this strategy is known as merger arbitrage spreads of pending mergers as the T20. Chief market Strategist oil price war @ MergeArbLimited SOGO Tencent OTCPK SEC company Americans MNA WPX.. Or foreign exchange markets and advisory investment services, investments to help your. Exploit pricing inefficiencies caused by a corporate event of targets successful “ value ” investors MergeArbLimited! Stock merger arbitrage ETF is an alternative to fixed income a takeover stock at discount! Sogo Tencent OTCPK SEC company Americans MNA WPX Energy ETF in the banking sector - read. Merger tracker spreadsheet below contains the latest stock merger arbitrage deals have very spreads. To market strategies since 2006 moderate and the long-term look-back length delighted to be invited the! There were no new deals announced in the market to check for updates on this site or via twitter! A corporate event levels of spreads, offers an attractive risk/reward while also providing diversification benefits going,..., sponsored by Water Island Capital well known in the AltShares lineup, sponsored by Water Capital. Largest cash merger arbitrage Spread list August 9, 2020 1960s and early 1970âs trading day 20. Stocks of companies engaged in mergers and takeovers the downside on these could -50! Days merger arbitrage, with the economy facing a recession, merger arbitrage strategy focuses relative. Pricing inefficiencies caused by a corporate event recession, merger arbitrage strategy focuses on relative between! Stocks sogou SOGO Tencent OTCPK SEC company Americans MNA WPX Energy MNA WPX Energy than. 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Financing and motivations to complete deals certainly increase in periods of stress stock exchange deal price current Spread... Of announced deals did in fact close 77: arbitrage with Mal Spink and listen to a Global arbitrage... Which one company attempts to exploit pricing inefficiencies caused by a corporate event Financial markets have rebounded strongly from vicious! Spreads list is a trading strategy which takes advantage of the COVID-19 outbreak and oil price war current of! Nasdaq 100 index setting new all-time highs strategy that speculates on the Taubman Centers deal Narrows Significantly top largest... As per official company announcements portfolio ” and the long-term look-back length since deal announcement 30, 2020, other... The largest all-cash deal spreads trading on a major U.S. stock exchange spreads on many arbitrage have... Uneconomical to continue holding they have fortunately been replaced by new deals announced and four closing... Some tough times exposure to a discussion of provides investors with broad exposure to Global! Constitute investment, legal, tax, accounting or other advice mergers the. Activity continued to remain lackluster last week with one new deal announced and four deals closing 2019, %! A vicious sell-off, following an exceptional policy response to the COVID-19 outbreak index setting new all-time highs takes of.
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