Merger Arbitrage Spread List April 21, 2019
This is the Merger Arbitrage Spread List April 21, 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.
Spread Tracker Rules
Rules for inclusion in this FREE list of the largest cash merger arbitrage spreads can be found on the Spread Tracker Rules. This page also includes additional help and user guidelines. Common rules for inclusion on the list include (but are not limited to) minimum price and trading volume. Unlike some data providers dividends have been included in the return calculation. Dividends can have a dramatic effect on the value of a spread. These are included up until the forecast completion date as given by the parties involved. Future ex-div dates are forecast using historical payment dates.
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
- Ellie Mae (ELLI) was the only completed deal from last week’s T20 list
- There were NO failed deals from last week’s list.
- USG corporation (USG) drops out of the list as the stock price approaches parity and Papa Murphy’s Holdings (FRSH) drops out for liquidity reasons
The Present
- The T20 list is once again below a full complement of 20 constituents. There is 1 new cash position.
- Global Brass and Copper (BRSS) and Advanced Disposal Services (ADSW) are the T20 replacements this week.
- The largest (simple) spread this week is Bluegreen Vacations Corporation (BXG) offering 8.45%.
- The average spread in the T20 list is 2.15%. This return is higher than last week due to the omission of the deals referred to above. The average merger arbitrage spread has also widened as a handful of new deals have been announced. Whilst more mature deals have moved towards parity (the offer price) or have successfully completed and exited the list.
- The average completion date is September 20th which gives an annualised return of 5.28%
- The geo-political scene appears to have stabilised. Additional positive sentiment comes from better than expected Chinese manufacturing data. This helps under pin market performance. Further increases in the broader market may cause these newly announced deals to move higher as the portfolio evolves. However, a market shock could still have a significant negative effect.
- Be careful using leverage in these situations. Maintain at least some dry power for the expected future opportunities.
The Future
- There are no scheduled earnings announcements this week from T20 constituents
- Versum Materials (VSM) has a special meeting scheduled for the 26th April
- There are no dividend payments expected during the coming week
- Deal announcements relating to this week’s T20 list will be announced in real time via our twitter feed @MergeArbLimited
