RE:RE:RE:Re Lack of Merger Arbitrage tradingExpereo wrote: Lattice, as I said. A risk arb may take a small trading position in a rumoured deal but that is about it.
They only commit real capital post a deal announcement. They have a job to do and it is to trade
the arb in the transaction not to speculate on something that may never happen.
knowing a lot of risk arbs I can comfortably say that they will not be getting involved in a meaningful
way until a transaction is announced.
Once a gambler always a gambler. They risk capital pre and post deal announcement. Speculating on whether another bidder may materialize to increase the SP or whether the bid may be increased is still speculation and just as risky.