Merger Arbitrage Spread List March 10, 2019
This is the Merger Arbitrage Spread List March 10, 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.
Not quite sure you’re ready for merger arbitrage yet?
Why not read our “How to Profit from Merger Arbitrage” guide first.
This merger arbitrage spread list (also known as risk arbitrage) provides the user with an investable database of deal spread opportunities. Rules for inclusion in this free list of the largest cash merger arbitrage spreads can be found on the Spread Tracker Rules page along with additional help and user guidelines. Common rules include (but are not limited to) minimum price trading volume. Unlike some data providers dividends, which can have a dramatic effect on the value of a spread have been included in the return calculation.
The Past
- There were no closed deals from last weeks T20 list
- There were NO failed deals from last weeks list.
- Ultimate Software (ULTI) drops out of the list due to the spread now trading at a premium to the offer price.
The Present
- There are no existing T20 existing replacements this week
- Nightstar Therapeutics (NITE) and Bluegreen Vacations Corporation (BXG) are the new cash deals announced during the week that made our list
- The largest (simple) spread this week continues to be Pacific Biosciences of California (PACB), offering a return of 9.74%. Redhat (RHT), which declined by $1.88 during the week sees its spread up to 5.14%.
- The average spread for the positive portion of the T20 list is a 1.20% return. This return is higher than last week. The T20 list now has only 16 constituents. To maintain consistency we have instigated (in line with the rules) four parts of cash in the vacant arbitrage spaces. Holding a cash position as part of the T20 portfolio also avoids the over reliance and weighting on the existing positions whose volatility may have had an outsized effect on the portfolio.
- We have warned for some time that speculating on the outcome of trade negotiations or or nuclear talk with North Korea is not within the sphere of merger arbitrage. Spreads had become so tight that any broader market increase will not move the overall spread portfolio much higher whereas any market shock could have a significantly negative effect. With this weeks drop in the market we have seen spreads widen but we still maintain our previous advice of taking profits when possible and be ready to take advantage of any pullback should it occur.
- Always be careful using leverage in these situations and maintain at least some dry power for future opportunities.
The Future
- There are no scheduled earnings announcements for the forthcoming week
- 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.
