risk arbitrage


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Related to risk arbitrage: Merger arbitrage

risk arbitrage

n.
The simultaneous purchase and sale of assets that are potentially but not necessarily equivalent in order to exploit a discrepancy in price.

risk arbitrageur n.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.risk arbitrage - arbitrage involving risk; as in the simultaneous purchase of stock in a target company and sale of stock in its potential acquirer; if the takeover fails the arbitrageur may lose a great deal of money
arbitrage - a kind of hedged investment meant to capture slight differences in price; when there is a difference in the price of something on two different markets the arbitrageur simultaneously buys at the lower price and sells at the higher price
References in periodicals archive ?
Before joining Tiedemann Investment Group in 2008, McVeigh was associate director of Risk Arbitrage at Bear Stearns & Co.
In 2002, he moved to Lehman Brothers to head the Asia and Japan Equities Division, before relocating to New York in 2004 to run the global equity derivatives business, convertibles and risk arbitrage.
The company also questioned Elliott's motivations, claiming that the hedge fund's motives "a[euro][broken bar]appear to be based on a short-term risk arbitrage trade rather than long-term shareholder value creation.
Sophisticated investors are showing eagerness to move from long-only investments to special situation long-short and risk arbitrage opportunities.
Risk arbitrage strategies are designed to profit from the positive spread between the offer and the target firm's stock price that often remains after a takeover attempt announcement.
The risk arbitrage community, and others, took note.
So I became very interested in risk arbitrage from college, and decided to pursue a career that developed the skills to manage a risk arbitrage portfolio.
This Article provides a risk arbitrage analysis of the relationship between variance, litigation valuation, and optimal deterrence.
The Dexia Long Short Risk Arbitrage Fund, which has about EoAeu220 million in assets.
The Event Driven Sales team focuses on risk arbitrage deals and the sales of US equities related to merger and acquisitions, distressed and other specific situations related to corporate restructurings.
The algorithm is designed to allow traders to execute any North American pair combination, supporting all major pair trade types such as risk arbitrage, statistical arbitrage, switch trades and cross-border trades.

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