Risk arbitrage : an investor's guide

Risk arbitrage an investor's guide

The definitive guide to risk arbitrage, fully updated with new laws, cases, and techniques Risk Arbitrage is the definitive guide to the field and features a comprehensive overview of the theory, techniques, and tools that traders and risk managers need to be effective. This new edition is completel...

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Bibliographic Details
Other Authors: Moore, Keith R. author (author)
Format: eBook
Language:Inglés
Published: Hoboken, New Jersey : John Wiley & Sons, Inc [2018]
Edition:Second edition
Series:Wiley finance series.
Subjects:
Arbitrage.
See on Biblioteca Universitat Ramon Llull:https://discovery.url.edu/permalink/34CSUC_URL/1im36ta/alma991009631496706719
Table of Contents:
  • Cover
  • Title Page
  • Copyright
  • Contents
  • About the Author
  • Chapter 1: Introduction
  • Chapter 2: What Is Risk Arbitrage?
  • Types of Transactions
  • Mergers
  • Tender Offers
  • Exchange Offers
  • Spinoffs
  • Recapitalizations
  • Activist Situations
  • Speculative Situations
  • Chapter 3: The Risk Arbitrage Industry
  • Chapter 4: Estimating the Return on a Risk Arbitrage Position
  • Simple Deals
  • Stock-for-Stock Deals
  • Stock-for-Stock Deals Using a Fixed-Exchange Ratio
  • Using Short Sales to Lock-in a Deal Spread
  • Complex Stock Merger Transactions
  • Collars on Stock-for-Stock Transactions
  • Example 1
  • Example 2
  • Actual Example of a Collar Deal
  • Prorated Transactions
  • Leverage
  • Example
  • Leveraged Returns on Stock-for-Stock Transactions
  • Example
  • Spread Behavior over Time
  • Timing of Risk Arbitrage Transactions
  • Estimating Timing in Merger Transactions
  • Estimating Timing in Tender Offer Transactions
  • Chapter 5: Estimating the Risk of Arbitrage Transactions
  • Assess the Price History of the Target Company
  • Example
  • Estimating the Total Risk of a Transaction
  • Example
  • Using Other Methodologies to Assess the Risk of Arbitrage Transactions
  • Using the Market-Adjusted Return Method to Assess Risk
  • Estimating Changes in Market Values Using a Sample of Comparable Companies
  • Calculating PRGO's Implied Price Using P/E Method
  • Calculating PRGO's Implied Price Using EV/Sales Method
  • Calculating PRGO's Implied Price Using EV/EBITDA Method
  • Conclusion
  • Chapter 6: Estimating the Probability of a Transaction's Occurrence
  • Gathering Information
  • Conducting Initial Research
  • Gathering Financial Information on the Proposed Transaction
  • Gathering Legal Information on the Proposed Transaction
  • Example
  • Vertical Mergers
  • Committee on Foreign Investment in the United States (CFIUS).
  • The European Commission
  • MOFCOM
  • Gathering Tax and Accounting Information of a Proposed Transaction
  • Conclusion
  • Chapter 7: The Risk Arbitrage Decision Process
  • Dynamic Aspect of Risk Arbitrage Analysis
  • Example
  • Even-Money Probability-A Tool for Risk Arbitrage Decision Making
  • Even-Money Probability Formula
  • Calculating Complex Risk-Adjusted Returns
  • Chapter 8: Hostile Takeovers
  • Differences between Contested and Uncontested Takeovers
  • Takeover Defenses
  • Staggering the Tenure of the Board of Directors
  • Diluting Shares via Poison Pills
  • Using Defenses Based on Bylaws
  • Defending via Private Lawsuits
  • Using State Takeover Laws as a Defense
  • Other Types of Defenses
  • Regulatory Defenses
  • The "Just-Say-No" Defense
  • Defenses Against Activist Investors
  • Recapitalization
  • Sale of the Target Company
  • Predicting the Outcomes of Various Defensive Strategies
  • A Hostile Takeover Case: Airgas/Air Products
  • Use of Decision Trees
  • Example
  • Estimating Value in Contested Takeover Attempts
  • Analyzing Comparable Companies
  • Analyzing Comparable Transactions
  • Analyzing Discounted Cash Value
  • Summary of WFM Situation and Valuation Estimates
  • Risk Assessment
  • Summary
  • Chapter 9: Trading Tactics
  • Determining Position Size
  • Execution of Transactions
  • Example: Bass Pro Shops' Acquisition of Cabela's
  • Timing of Executions
  • Using Computers to Aid Trading Tactics
  • Trading Transactions with Collars
  • Example: Merger of Rockwell Collins and B/E Aerospace
  • Hedging the Collar Options
  • Summary
  • Chapter 10: Portfolio Management
  • Position Limits and Portfolio Diversification
  • Setting Individual Position Limits
  • Sensitivity Analysis
  • Portfolio Deal-Break Risk
  • Additional Methods to Limit Risk
  • Friendly Transactions
  • Leveraged Buyouts.
  • Recaps, Spinoffs, Targets for Sale, and Situations Where the Targets Have Received an Offer
  • Grouping by Cash Flow
  • Portfolio Analysis by Spread
  • Overbids
  • Hedging
  • Melding a Position Sheet with a Risk Arbitrage Analysis
  • Other Risk Containment Measures
  • Futures
  • Option Hedging
  • A Buy-Write Example
  • A Put Example
  • Chapter 11: The Exciting World of Risk Arbitrage
  • The Event Timeline: The STRP/T/VZ Deal
  • The STRP/T/VZ Adventure
  • The Aftermath of the STRP/T/VZ Takeover Battle
  • Appendix A: Tender Offer Document
  • Appendix B: Airgas/Air Products-Text of Court Decision
  • Introduction
  • Conclusion
  • Appendix C: Whole Foods Markets-Excerpts from Proxy Statement
  • Summary of Evercore's Financial Analysis
  • Precedent Transactions Analysis
  • Discounted Cash Flow Analysis
  • Appendix D: Straight Path Communications-Excerpts from Proxy Statement
  • Background of the Merger
  • Verizon's Reasons for the Merger
  • Appendix E: Straight Path Communications-Excerpts from STRP's 8-K Filed on April 13, 2017
  • Acknowledgments
  • Index
  • EULA.

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