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.
American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
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
Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc.
References in periodicals archive ?
After his MBA, he joined the Risk Arbitrage desk in Lehman Brothers and left when that institution collapsed.
Before joining Tiedemann Investment Group in 2008, McVeigh was associate director of Risk Arbitrage at Bear Stearns & Co., where he served as an analyst on an eight person team managing USD2bn of proprietary capital.
Risk Arbitrage -0.49 percent -0.01 percent -0.88 percent
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 inventory is extensive: monetarist balanced budgeting displacing activist economic policies; central bank autonomy and financial market liberalization; labour market flexibilization cutting union and unemployed rights; social citizenship of universal benefits transformed into individualized risk arbitrage in the accumulation of human capital assets; remaking of international economic institutions to legally mandate the protection of private investments and free trade; the re-assertion of American primacy and empire in international relations.
The risk arbitrage community, and others, took note.
"When I was at NYU, I took a course, taught by John Whitehead-chairman of Goldman Sachs at the time-and he brought in Bob Rubin, who at that time headed risk arbitrage. He was the star; he was rumored to be the next senior partner, and ran the most profitable part of Goldman.
When liability is ordinary, the corporate defendant will usually have a risk arbitrage opportunity.

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