So I dont get it, when I look at this screen, I see companies that are going to be bought at a decent premium to there current market value.
Why not just purchase the all cash offering ones ?
It can't be that easy, thats why I am asking to find out what the deal is here.作者: Viceroy 时间: 2011-9-29 15:10
not all of them will go through - so there is inherent risk作者: laurab 时间: 2011-9-29 15:22
What about the ones trading @ a discount to the offer!?!
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ChickenTikka Wrote:
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> Being Born Wealthy > Being Jewish or WASPY > Born
> Pretty > Top 5 MBA > CFA > Avg MBA > Born middle
> class > Born lower class > Born in crack house >
> Born middleclass in Asia and working in IT but
> looking to switch to buyside作者: Windjammer 时间: 2011-9-29 15:35
ASSet_MANagement Wrote:
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> What about the ones trading @ a discount to the
> offer!?!
they all are.作者: smuggycfa 时间: 2011-9-29 15:47
^
Not according to MARB <GO> with the terminal sitting 3 inches to my left.
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ChickenTikka Wrote:
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> Being Born Wealthy > Being Jewish or WASPY > Born
> Pretty > Top 5 MBA > CFA > Avg MBA > Born middle
> class > Born lower class > Born in crack house >
> Born middleclass in Asia and working in IT but
> looking to switch to buyside作者: lunarfollies 时间: 2011-9-29 15:59
Deal risk. There are funds that specialize in doing nothing but this stuff. They try to analyze the chances of a deal blowing up, getting prolonged, etc.作者: economicz 时间: 2011-9-29 16:12
^WHat sort of returns are a lot of these merg arb funds making?作者: pimpineasy 时间: 2011-9-29 16:37
transferpricingCFA Wrote:
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> ^WHat sort of returns are a lot of these merg arb funds making?
It's a short gamma trade so you'll have many small gains followed by a large loss. Returns depend on the spread volatility, but think small consistent returns.作者: DSquaredSlim 时间: 2011-9-29 16:49
So essentially these merg arb funds look at something like these bloomberg screen, investigate and asses which ones are likely to go through and invest in the target?
