LATEST MERGER ARBITRAGE SPREADS
22 July 2009 by Cullen Roche
3 Comments
As the credit markets heal this is becoming a more and more active space:
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Comments
This is exactly the reason as to why I have Merger Arbitrage as a significant portion of the portfolios that I am running. Merger/arb will have to pick up if the economy is going to.
It’s coming back into play. I am actually shocked that we haven’t seen more action with the relatively low valuations and healthier credit markets. My guess is most companies are still in survival mode as opposed to expansion mode. It will ramp. It’s always a key component of my work.
I think Merg/Arb will be part of the survival mode. If we get the “W” recession, I am of the opinion that you will see more and more firms trying to possibly buy earnings\market share. The news out of AMZN today is interesting, CC tomorrow should be telling.