Risk Arbitrage

A systematic approach to risk arbitrage techniques that work in today's market

Both the growth in hedge funds and the changing nature of the merger and acquisition business have affected the process of risk arbitrage and the techniques used to participate in the business.

Risk Arbitrage, Second Edition goes to great lengths to reflect these changes with case studies on new mergers, information on new legal changes that affect merger interactions, and details about the rise of computers and trading systems, which have had a major effect on an individual's ability to compete with professionals in managing risk arbitrage portfolios.
* Completely updated to include new trends and strategies in this field
* Examines how you can apply risk arbitrage in real-world situations
* Follows in the footsteps of the first edition, which is considered to be the definitive text on risk arbitrage
* Discusses how you can effectively compute spreads and determine risk

Insightful and engaging Risk Arbitrage, Second Edition is the book you need to succeed in today's turbulent financial markets.

About the Author xi
CHAPTER 1
Introduction 1
CHAPTER 2
What Is Risk Arbitrage? 9
CHAPTER 3
The Risk Arbitrage Industry 27
CHAPTER 4
Estimating the Return on a Risk Arbitrage Position 33
CHAPTER 5
Estimating the Risk of Arbitrage Transactions 61
CHAPTER 6
Estimating the Probability of a Transaction's Occurrence 83
CHAPTER 7
The Risk Arbitrage Decision Process 107
CHAPTER 8
Hostile Takeovers 117
CHAPTER 9
Trading Tactics 149
CHAPTER 10
Portfolio Management 173
CHAPTER 11
The Exciting World of Risk Arbitrage 201
APPENDIX A: Tender Offer Document 215
APPENDIX B: Airgas/Air Products-Text of Court Decision 281
APPENDIX C: Whole Foods Markets-Excerpts from Proxy Statement 291
APPENDIX D: Straight Path Communications-Excerpts from Proxy Statement 299
APPENDIX E: Straight Path Communications-Excerpts from STRP's 8-K Filed on April 13, 2017 329
Acknowledgments 337
Index 339