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Tax arbitrage |
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Tax arbitrageTrading that takes advantage of a difference in tax rates or tax systems as the basis for profit.Tax arbitrage Similar MatchesTriangular arbitrageTriangular arbitrageStriking offsetting deals among three markets simultaneously to obtain an arbitrage profit. ArbitrageurArbitrageurA person or firm carrying out arbitrage. Multiple ArbitrageMultiple ArbitrageIn the context of hedge funds, a style of management where by the fund employs more than one arbitrage strategy. Portfolio manager opportunistically allocates capital among the various strategies in order to create the best risk/reward profile for the overall fund. Common strategies include merger arbitrage, convertible arbitrage, fixed income arbitrage, long/short equities pairs trading, and volatility arbitrage. In the context of equity and private equity investment, this refers to an investment in a firm where by standard multiples (earnings/price, book/price) indicate the price is far cheaper than industry averages. Arbitrage bondsArbitrage 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. Covered interest arbitrageCovered interest arbitrageA combination of transactions on two countries' securities and exchange markets designed to profit from failure of covered interest parity. A typical set of transactions would include selling bonds in one market, using the proceeds to buy spot foreign currency and foreign bonds, and selling forward the return at a future date. See also one-way arbitrage. Further SuggestionsTriangular arbitrageconversion arbitrage Currency arbitrage Locational arbitrage arbitrage Reversal Arbitrage Special arbitrage account Arbitrage Trading Program (ATP) Covered interest arbitrage Arbitrage Index arbitrage Risk controlled arbitrage Arbitrage free option pricing models Structured arbitrage transaction Arbitrageur International arbitrage Riskless arbitrage Convertible Arbitrage One-way arbitrage Discount Arbitrage Merger Arbitrage |
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