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Merger Arbitrage: How to Profit from Event-Driven Arbitrage Thomas Kirchner
Publisher: Wiley

Focusing on identifying company specific catalysts such the addition or deletion of a stock from an index, the start-up of a new mine or a merger arbitrage opportunity provides a great way to maximize non-correlated long term investment returns while minimizing risk. Relative value strategies include merger arbitrage, convertible bond arbitrage, fixed income arbitrage, mortgage backed arbitrage and capital structure arbitrage. This is the flip side to merger arbitrage. How Investors Benefit from Reading My Book “Merger Arbitrage: How To Profit From Event-Driven Arbitrage” Video Rating: 5 / 5. Arbitrageurs use leverage, short-selling, derivatives and synthetic securities (matching one asset with a combination of others with similar profit and loss profiles) to attempt to take advantage of discrepancies among prices. Knoxville, TN (PRWEB) April 07, 2012. Whether these ETFs use long/short strategies, merger arbitrage or event-driven trading, what investors most often focus on is bottom line returns. Relative value strategies are arbitrage transactions that seek to profit from the spread between two securities rather than from the general market direction. The risk, of course, is that the deal falls through, and the spread widens quickly. (See “Event Driven Strategies” for more details.) Liquidation arbitrage.