Tag Archive: ARBITRAGE


 

Yesterday saw the Arbitrage –  drama film directed by Nicholas Jarecki and starring Richard Gere. A troubled hedge fund magnate desperate to complete the sale of his trading empire makes an error that forces him to turn to an unlikely person for help.

It is well-known that risk arbitrageur play an important role in the market for corporate control. After a tender offer, the trading volume increases dramatically in large part because of risk arbitrageurs activity. They take long positions in the target stock, in the hope that the takeover will go through. They are also usually hedged by taking short positions in the Continue reading

Bank For International Settlements (BIS) has come out with a consultative documents to revise market risk framework and the proposed a number of specific measures to improve trading book capital requirements. These proposals reflect the Committee‘s increased focus on achieving a regulatory framework that can be implemented consistently by supervisors and which achieves comparable levels of capital across jurisdictions. Continue reading

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