Merger Arbitrage Spread List March 31, 2019
This is the Merger Arbitrage Spread List March 31, 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
- Integrated Device Technology Inc (IDTI) was the only completed deal from last week’s T20 list.
- There were NO failed deals from last weeks list.
- Travelport (TVPT) drops out of the list as the spread is no longer large enough to make a fully populated list.
The Present
- WABCO Holdings (WBC) and Quantenna Communications (QTNA) are the T20 replacements this week – these are both new cash deals announced during the week
- The largest (simple) spread this week continues to be Pacific Biosciences of California (PACB), offering a return of 10.65%. Bluegreen Vacations Corporation
(BXG) is the second largest offering 8.82% following the announcement of complications regarding Bass Pro’s intention to cancel access to marketing channels. - The average spread for the positive portion of the T20 list is a 2.14% return. This return is significantly higher than recent historical average due to the addition of MLNX, WBC and QTNA. The T20 list is now back up to a full compliment of 20 constituents. There is no longer a need to hold a cash position.
- We have warned for some time that speculating on the outcome of the broader economic picture or the wider geo-political scene is not within the sphere of merger arbitrage. Despite this, merger arbitrage spreads have widened during the week due to the addition of new deals which makes the strategy more attractive than in recent times. However, further increases in the broader market will not move the overall spread portfolio much higher whereas any market shock could have a significantly negative effect.
- Always be careful using leverage in these situations and more than ever, maintain at least some dry power for the expected future opportunities.
The Future
- American Midstream (AMID) reports before the market open on Monday 1st April and Nightstar Therapeutics (NITE) is scheduled to announce earnings on April 2nd
- There are no dividend payments expected during the coming week.
- The HSR waiting period for Spark Therapeutics (ONCE) is expected to expire during the coming week on April 2nd
- Any deal announcements relating to this weeks T20 list will be announced in real time, most often via out twitter feed @MergeArbLimited.
