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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In finance, statistical arbitrage (often abbreviated as Stat Arb or StatArb) is a class of short-term financial trading strategies that employ mean reversion...
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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...
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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...
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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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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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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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Covered interest arbitrage is an arbitrage trading strategy whereby an investor capitalizes on the interest rate differential between two countries by...
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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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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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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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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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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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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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Options arbitrage is a trading strategy using arbitrage in the options market to earn small profits with very little or zero risk. Traders perform conversions...
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The scorched-earth defense is a form of risk arbitrage and anti-takeover strategy. When a target firm implements this provision, it will make an effort...
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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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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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securities, securitized assets, direct investments, convertible arbitrage, risk arbitrage, equities, and special situation securities. It has offices across...
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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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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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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...
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estate firm, Heyman Properties. In late 1982, Heyman, by then a savvy risk arbitrage investor, acquired approximately 4.1% of the outstanding shares in GAF...
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15 years of prior experience: distressed securities, risk arbitrage, and convertible arbitrage. The multi-strategy platform was added in 1993 as a way...
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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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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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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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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...
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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