Merger Arbitrage Spread List May 12, 2019
This list of the largest merger arbitrage spreads is a FREE list of cash spreads trading on major US exchanges. The Merger Arbitrage Spread List May 12, 2019 is the latest list of opportunities available. 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.
For more advanced users the individual generic URL for these archived pages is “https://mergerarbitragelimited.com/largest-merger-arbitrage-spreads-YYYYMMDD“. Where “YYYYMMDD” is the international standard ISO 8601 for dates. For example, a trader could use this generic URL BUT replace “YYYYMMDD” with “20190512”. This would refer to Sunday May 12, 2019 (a Sunday archived list). In this example, the trader locates directly the list of largest merger arbitrage spreads 20190512 post.
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. Our Website Enhancements and Functionality page provides a comprehensive guide to maximising the information available on this site.
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
- Attunity (ATTU), was the only deal to close during the week from the list
- No other stocks other than Attunity drop out of the list this week
- There were NO deal failures from last week’s list.
The Present
- The T20 list now operates with 18 constituents and 2 cash positions due to an insufficient number of eligible spreads
- Buckeye Partners (BPL) is the only new deal spread that makes our list this week
- Nightstar Therapeutics (NITE) is the only existing T20 entrant this week.
- The largest (simple) spread this week is once again Pacific Biosciences of California (PACB) offering 7.96%.
- The average spread of the T20 components is 2.84%. This return is significantly higher than last week. This reflects the large decline in specific deal spreads due to the declining broader market.
- The average completion date is October 5 (versus September 24). With the additional 2 cash positions, this gives an annualized return of 6.52%
The Future
- There are no earnings announcements from the members of the list scheduled for this week
- There are no special meetings scheduled for this week from our T20 list
- Versum Materials (VSM) goes ex-div on May 13 and Buckeye Partners (BPL) & Tribune Media Company (TRCO) go ex-div on May 17.
- Deal announcements relating to this week’s T20 list will be announced in real time via our twitter feed @MergeArbLimited
And Finally…
- Almost right on cue, the positive sentiment and encroaching complacency was shattered during the week. The threat of a prolonged trade war increases as a failure to resolve the trade dispute continues. Deals and spreads with a Chinese connection continue to suffer as fears grow of retaliatory practices.
- We maintain our warning of how these issues hurt merger arbitrage spreads. Spreads could still be affected further, but those further along the timeline of completion could provide attractive opportunities.
- Be careful using leverage in these situations, especially longer dated deals. The dry power we advised you maintain may now come in to play and serve you well.
