RE:RE:RE:RE:RE:RE:Re Lack of Merger Arbitrage tradingLattice. Nothing to debate. You just do not understand how the risk arb market works. In order for an active ie High Volume risk arb market to materialize and have an real traction there first is required to be an actual offer made to buy a company. Yes, lots of hedge funds have risk arb teams on their desks. As per your comment, hedge funds are shifting assets to their risk arb teams in an attempt to find alpha in a difficult market. That is no great secret. Large hedge funds frequently move capital among their various teams. You do understand that the risk arb team at a Paulson is separate from the other specialized investment groups don't you?
Some risk arb groups will indeed trade around a stock likc CRX when there is the possibility of an offer forth coming. That is called speculating and yes they do it every day.But the real volume from the arb groups will only materialize post a deal being announced.
And yes i do have special knowledge which comes from sitting on a trading desk for 20 years and
yours comes from?? Right, reading bloomberg articles