merger arbitrage
risk arbitrage
Event driven trading strategies seek to exploit relative mispricings between securities whose issuers are involved in mergers, divestures, restructurings or other corporate events.
Merger Arbitrage exploits merger activity to capture the spread between current market values of securities and their values after successful completion of a merger, restructuring or similar corporate transaction.
Sponsors Center
Sponsored Links ...
Merger arbitrageurs-whether in hedge funds or investment banks-take large positions knowing that bidders' share prices tend to drop immediately after a deal announcement and that targets will see share price appreciation.
Merger Arbitrage
Definition: [crh] In the context of hedge funds, a style of management that involves the simultaneous purchase of stock in a compaDefinition: ny being acquired and the sale of stock in its acquirer.
Risk arbitrage/merger arbitrage
Risk arbitrage, also called merger arbitrage, is a form of speculation on the outcome of takeover bids. It is essentially an absolute return strategy and should usually be market neutral.
Merger Arbitrage
An investment strategy involving the simultaneous purchase of stock in a company that is in the process of being taken over, and short-selling the stock of the firm intent on making the acquisition.
Merger arbitrage also called risk arbitrage would be an example of this. Merger arbitrage generally consists of buying the stock of a company that is the target of a takeover while shorting the stock of the acquiring company.
The firm's activity in this respect is sometimes called M&A (Merger and Acquisition) Merger Arbitrage In the context of hedge funds, ...
Distressed and merger arbitrage also belong to the event-driven category.
Funds usecurrency options, futures, convertible bond arbitrage, merger arbitrage, and elaborate cross currency hedges, but the most effective hedges are expensive.
Merger arbitrage (Risk arbitrage) - exploit pricing inefficiencies between merging companies.
Special situations - specialized in restructuring companies or companies engaged in a corporate transaction.
The Method Behind Merger Arbitrage and Managed Futures
AQR's Cliff Asness describes the strategies behind the firm's merger-arbitrage and managed futures funds. (04:16)
Trade from Home Using Online Stock Market Software ...
Trade Takeover Stocks With Merger Arbitrage
Cram-Down Deal
1. A situation in which a creditor is forced to accept undesirable terms imposed by a court during a bankruptcy or reorganization.
Common strategies include merger arbitrage, convertible arbitrage, fixed income arbitrage, long/short equities pairs trading, and volatility arbitrage.
In the context of hedge funds, a style of management that combines many different types of hedge fund investing such as merger arbitrage, distressed securities and high yield investing, ...
 See also: Hedge fund, Banks, Expense, Compensation, Economic indicators
  
|
RSS
