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Arbitrage bonds |
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Arbitrage bondsMunicipality issued bonds issued intended to gain an interest rate advantage by refunding a higher-rate bond in ahead of their call date. Lower-rate refunding issue proceeds are invested in Treasuries until the first call date of the higher-rate issue.Arbitrage bonds Similar MatchesArbitrageurArbitrageurOne who profits from the differences in price when the same, or extremely similar, security, currency, or commodity is traded on two or more markets. The Arbitrageur profits by simultaneously purchasing and selling these securities to take advantage of pricing differentials (spreads) created by market conditions. See: Risk arbitrage, convertible arbitrage, index arbitrage, and international arbitrage. Riskless arbitrageRiskless arbitrageThe simultaneous purchase and sale of the same asset to yield a profit. ArbitrageArbitrageA combination of transactions designed to profit from an existing discrepancy among prices, exchange rates, and/or interest rates on different markets without risk of these changing. Simplest is simultaneous purchase and sale of the same thing in different markets, but more complex forms include triangular arbitrage and covered interest arbitrage. Triangular arbitrageTriangular arbitrageArbitrage among three currencies. For example (letting x/y be the currency x per unit of currency y exchange rate), if $/¥ > ($/£)(£/¥), then an arbitrager can make a profit buying £ with $; buying ¥ with those £; and then selling those ¥ for $. Merger ArbitrageMerger ArbitrageIn the context of hedge funds, a style of management that involves the simultaneous purchase of stock in a company being acquired and the sale of stock in its acquirer. Further Suggestionsconversion arbitrageSpecial arbitrage account Tax arbitrage Triangular arbitrage Reversal Arbitrage One-way arbitrage Currency arbitrage Locational arbitrage Arbitrage Trading Program (ATP) Risk controlled arbitrage International arbitrage Covered interest arbitrage Arbitrage free option pricing models Covered interest arbitrage Multiple Arbitrage Index arbitrage arbitrageur arbitrage Discount Arbitrage Convertible Arbitrage Structured arbitrage transaction |
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