Merger Arbitrage Spread List April 28, 2019
This is the Merger Arbitrage Spread List April 28, 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.
Merger Arbitrage Spread List Guidelines
Each Sunday a copy of this page, including the embedded excel file, is transferred to 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 of largest merger arbitrage spreads is also available. This companion report highlights the gainers & losers as well as deal completions or failures along with additional merger arbitrage investment commentary.
The Past
- USG Corporation (USG), a previous member, although not a constituent of last week‘s T20 list, was the only closed deal during the week
- There were NO failed deals from last week’s list.
- American Midstream (AMID) drops out of the list as the spread is too small
The Present
- The T20 list now operates with 1 cash position and 19 constituents as an insufficient number of eligible spreads are available
- There are no new T20 replacements this week.
- The largest (simple) spread this week is once again Pacific Biosciences of California (PACB) offering 8.84%.
- The average spread in the T20 list is 2.34%. This return is higher than last week due to the sizable decline of a number of spreads.
- The average completion date is September 23, giving an annualised return of 5.87%
- Positive sentiment comes from better than expected corporate earnings. A surprisingly good GDP number also provided a boost for the market although there are fears this may reverse in future quarters as inventories unwind. Further increases in the broader market may cause newly announced deals to move higher as the portfolio evolves. Especially as we approach new highs. 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
- Advanced Disposal Services (ADSW) announces earnings on April 30, Global Brass and Copper (BRSS) announces on May 1, InfraREIT, Inc. (HIFR) reports on May 2 and Pacific Biosciences of California (PACB) reports on May 3
- Ultimate Software (ULTI) has a special meetings scheduled for April 30
- Bluegreen Vacations Corporation (BXG) goes ex-div on April 29
- Deal announcements relating to this week’s T20 list will be announced in real time via our twitter feed @MergeArbLimited
