Merger Arbitrage Spread List February 3, 2019
This is the Merger Arbitrage Spread List February 3, 2019. A FREE list of the largest cash merger arbitrage opportunities trading on major US exchanges. The FREE spreadsheet below contains the latest essential deal information and criteria as per official company announcements. This merger arbitrage spread list provides the user with an investable database of deal spread opportunities. This information can provide a solid foundation for making merger arbitrage investing part of your investment portfolio. We encourage traders and investors to perform their own due diligence before making investments. However, merger arbitrage (also known as risk arbitrage) is relatively simple to understand and execute. The most recent spread listings can be found here.
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The Past
- There were TWO closed deals from last weeks T20 list, Essendant Inc (ESND) & Vectren Corp (VVC)
- There were NO failed deals from last weeks list.
- The TWO stocks to drop out of last weeks list are the aforementioned Essendant Inc (ESND) & Vectren Corp (VVC)
The Present
- The T20 replacements this week is Travelport (TVPT) & Mindbody (MB)
- There were no new cash deals announced during the week that made our list
- The largest (simple) spread this week is Pacific Biosciences of California (PACB), offering a return of 16.96%. The stock declined $0.33 this week following on from last weeks drop. Redhat (RHT), which increased by an additional $1.88 during the week sees its spread narrow to 6.51%. NxStage Medical (NXTM) which also saw it’s spread narrow significantly during the week still maintains the third largest spread of 2.92%
- The average spread for the entire T20 list is a 1.94% return which is a significant decrease even as we were warning spreads were already tight. This is in part attributable to the rising broader market and renewed hopes that the government will be fully functional and able to clear the deal review backlog in the near future. Our analysis here continues to echo the sentiments of previous weeks. It is difficult to justify the level of return for the level of risk/volatility currently available in the market arbitrage space at the portfolio level. Some individual deals however do (and have) offer attractive returns especially those whose closure may occur sooner than the market anticipates. Traders are advised to take some money of the table where possible. A broader market sell off can still occur as the problems in the global political space remain unresolved. Ongoing tensions between the US & China may flare up at any time as there is no guarantee the situation will be resolved in the near term. Speculating on the outcome of these negotiations is not within the sphere of merger arbitrage and for this reason we continue to advise taking profits when possible and be wary of rushing into a new position just for the sake of employing capital. Be careful using leverage in these situations and maintain at least some dry power for future opportunities.
The Future
- Civitas Solutions (CIVI) announces earnings on Monday morning and Aspen Insurance Holdings Limited (AHL) reports after the close on Wednesday
- There are no dividend payments expected during the coming week
- Any deal announcements relating to this weeks T20 list will be announced in real time, most often via out twitter feed @MergeArbLimited.
