Merger Arbitrage Spread List April 7, 2019
This is the Merger Arbitrage Spread List April 7, 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.14
Spread Tracker Guidelines
Each Sunday this top 20 page and the accompanying excel file are archived into the “Spreads Archive” page for easy reference. You can find last weeks top 20 in this section. A companion post, a review of the week’s biggest movers to the previous week’s list, is also available. This companion post highlights the gainers and losers and any deal completions or failures. There is also more extensive merger arbitrage investment commentary.
Additional Resources
In addition to our FREE merger arbitrage spread list you can also check out more great FREE content on this site using the menu bar above. Scroll through the listings on the “performance” and “strategy” pages to view our regular weekly output. To the right you can see what everyone else is reading in “Popular Posts” or click on the “Archive” links. You can download our FREE to use Excel merger arbitrage spread calculation tool. This can calculate any stock-for-stock deal spreads you may be interested in along with detailed instructions for use.
The Past
- Arris International (ARRS) is the only completed deal from last week’s T20 list although Immune Design (IDTI) also closed successfully.
- There were NO deal failures from last week’s list.
The Present
- Travelport (TVPT) is the T20 replacement this week although this spread is a mere 0.19%
- The largest (simple) spread this week continues to be Pacific Biosciences of California (PACB), offering a return of 10.19%. Mellanox (MLNX) is the second largest and offeris5.14% despite the stock rising significantly during the week.
- The average spread return for the T20 list is 1.88%. This return is significantly lower than last week due to the performance of BXG. Although it is still higher than the recent average. The T20 list is now back up to a full complement of 20 constituents. There are no longer any cash positions.
- As the wider geo-political scene stabilises the performance of the broader market becomes more predictable. Merger arbitrage spreads have been squeezed recently but a handful of new deals have provide some potential opportunities. However, further increases in the broader market will not cause the overall portfolio return to move significantly. Whereas a market shock could have a demonstratably negative effect.
- Use caution when trading with leverage in these situations and maintain at least some dry power for the expected future opportunities.
The Future
- No earnings announcements from this week’s list are scheduled for the coming week
- No dividend payments expected during the coming week.
- Deal announcements relating to this weeks T20 list will be announced in real time, most often via out twitter feed @MergeArbLimited.
