RE:RE:RE:RE:Re Lack of Merger Arbitrage tradingThanks Lattice. you clearly do not understand the difference between the hedge fund community and the risk arb community. They are for the most part two very different groups. Yes hedge funds are losing money and bleeding assets which is why they are speculating in possible corporate reorganizations. BUT that is not the risk arb market. Currently its just a few hedge funds tryiing to generate alpha in their portfolio.
The risk arb community for the most part is a totally different group of fund managers who only spend their days investing in actual risk arb opportunities. This capital only comes into the market when there is an actual arb opportunity for them to participate in and we do not have that event in place at this time. If and when a deal is announced the volumes will explode as the REAL risk arbs actually go to work. Until then hedge funds like Paulson etc will just trade around the quote. The real volume will only materialize post a deal announcement. So back to my original thesis. Folks should not be dissappointed that the risk arb community is not involved in CXR. There will be a time but it is not now.