Read more about the article Event Driven Investment Strategies
Event Driven Investment Strategies

Event Driven Investment Strategies

When companies join together or collaborate the two most common procedures are to undertake either a merger or acquisition. Event driven investment strategies often focus on the eventual outcome of the corporate action. However, it is important to understand the differences between mergers and acquisitions and how these corporate events both overlap and differ in order to profit from merger arbitrage.

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Read more about the article Hidden Risk In Merger Arbitrage – Deal Extension
Hidden Risk In Merger Arbitrage – Deal Extension Risk

Hidden Risk In Merger Arbitrage – Deal Extension

The principal risk associated with a merger arbitrage (risk arbitrage) strategy is the risk of deal failure. But how many traders are aware of ANOTHER important risk element? Deal Extension risk, sometimes referred to as Delayed Deal Completion Risk is also present. The length of time a deal takes to complete can have a dramatic effect on the annualised returns of this strategy.

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