Risk arbitrage, also known as merger arbitrage, is an investment strategy that speculates on the successful completion of mergers and acquisitions. An...
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price. In principle and in academic use, an arbitrage is risk-free; in common use, as in statistical arbitrage, it may refer to expected profit, though losses...
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the unique risk-neutral measure. Such a measure exists if and only if the market is arbitrage-free. The easiest way to remember what the risk-neutral measure...
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In finance, arbitrage pricing theory (APT) is a multi-factor model for asset pricing which relates various macro-economic (systematic) risk variables to...
19 KB (2,567 words) - 05:12, 6 December 2023
In finance, statistical arbitrage (often abbreviated as Stat Arb or StatArb) is a class of short-term financial trading strategies that employ mean reversion...
15 KB (1,887 words) - 22:14, 14 January 2024
Covered interest arbitrage is an arbitrage trading strategy whereby an investor capitalizes on the interest rate differential between two countries by...
11 KB (1,308 words) - 14:59, 12 July 2024
Proprietary trading (redirect from Proprietary trading risks)
constantly watch for arbitrage opportunities. One of the more notable areas of arbitrage, called risk arbitrage or merger arbitrage, evolved in the 1980s...
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Hedge fund (section Risk)
market. Risk arbitrage or merger arbitrage includes such events as mergers, acquisitions, liquidations, and hostile takeovers. Risk arbitrage typically...
183 KB (17,762 words) - 20:25, 25 August 2024
Triangular arbitrage (also referred to as cross currency arbitrage or three-point arbitrage) is the act of exploiting an arbitrage opportunity resulting...
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Algorithmic trading (redirect from Event arbitrage)
arbitrageur to earn a profit. Merger arbitrage also called risk arbitrage would be an example of this. Merger arbitrage generally consists of buying the stock...
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volatility On-the-run/off-the-run spread Junk bond arbitrage Short equity volatility Risk arbitrage Equity relative value Long emerging market sovereigns...
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{\displaystyle (\Omega ,{\mathcal {F}},P)} is arbitrage-free if, and only if, there exists at least one risk neutral probability measure that is equivalent...
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In finance, volatility arbitrage (or vol arb) is a term for financial arbitrage techniques directly dependent and based on volatility. A common type of...
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Fixed-income arbitrage is a group of market-neutral-investment strategies that are designed to take advantage of differences in interest rates between...
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Performance" (PDF). Journal of Personal Finance. 10 (1): 9. Retrieved 26 June 2013. Risk Arbitrage: An Investor's Guide Financial Enterprise Risk Management...
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Convertible arbitrage is a market-neutral investment strategy often employed by hedge funds. It involves the simultaneous purchase of convertible securities...
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for San Francisco-based private equity firm Hellman & Friedman, as a risk arbitrage trader under Robert Rubin at Goldman Sachs, and in Morgan Stanley's...
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Alexander von Fürstenberg began his career in 1993 as a trader on the Risk Arbitrage Desk of Allen and Company. He is now the chief investment officer of...
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Political arbitrage is a trading strategy which involves using knowledge or estimates of future political activity to forecast and discount security values...
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their tooth.[citation needed] In economics, a suicide pill is a form of risk arbitrage used by corporations to suicide during hostile takeover attempts. As...
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Records, followed by work as an analyst at Bear Stearns, worked as a risk arbitrage analyst at his family's family office, Gruss & Company. He was also...
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securities, securitized assets, direct investments, convertible arbitrage, risk arbitrage, equities, and special situation securities. It has offices across...
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introducing a continuously rebalanced risk-free portfolio containing an option and underlying stocks. In the absence of arbitrage, the return from such a portfolio...
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and a municipal bond department, and it became an early innovator in risk arbitrage. In the 1950s, Gus Levy joined the firm as a securities trader, where...
219 KB (19,704 words) - 04:08, 25 August 2024
15 years of prior experience: distressed securities, risk arbitrage, and convertible arbitrage. The multi-strategy platform was added in 1993 as a way...
19 KB (1,554 words) - 10:53, 7 May 2024
example is risk arbitrage, which has been unprofitable for some time after the decline in investment banking in 2001. As M&A activities increased, risk arbitrage...
10 KB (1,187 words) - 18:57, 23 March 2024
the New York Stock Exchange and formed Icahn & Co., which focused on risk arbitrage and options trading. In 1978, in his first takeover attempt, he took...
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Alternative investments are sometimes used as a way of reducing overall investment risk through diversification. Some of the characteristics of alternative investments...
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Rational pricing (category Arbitrage)
arbitrageur can "lock in" a risk-free profit by purchasing and selling simultaneously in both markets. In general, arbitrage ensures that "the law of one...
26 KB (3,730 words) - 08:01, 27 May 2024
worked as an intern at Goldman Sachs, and then worked in the firm's risk arbitrage department from March 1985 to February 1988. While there, he worked...
19 KB (1,709 words) - 21:03, 16 May 2024