IQ Merger Arbitrage ETF

Most Recent

  • uploads///Merger Acquisition Trend Showing a Strong Rally
    Macroeconomic Analysis

    What’s the Mergers and Acquisition Trend Showing?

    The M&A (mergers and acquisition) (MNA) (MRGR) trend showed a rally since 1Q09. This rally continued until 4Q15. In 4Q15, the M&A deal was $11,150 billion.

    By Sarah Sands
  • uploads///SPLS ODP ODP basics
    Consumer

    Basics of Office Depot

    Office Depot is a global supplier of office products and services to businesses and consumers. The company has 64,000 employees.

    By Brent Nyitray, CFA, MBA
  • uploads///SPLS ODP background
    Miscellaneous

    Don’t trade the Office Depot spread like a typical arb spread

    Once the proxy comes out, check the transaction background and see if they ran an auction. If not, a private equity buyer may step in after the deal breaks.

    By Brent Nyitray, CFA, MBA
  • uploads///SPLS ODP upside downside
    Miscellaneous

    Handicapping the risk-reward balance of the Office Depot deal

    Staples stock was up on the announcement, and the analyst community understands the pressure this segment is under. At any rate, no Staples vote is needed.

    By Brent Nyitray, CFA, MBA
  • uploads///SPLS ODP rationale
    Miscellaneous

    Parsing the Office Depot Material Adverse Change clause, part 1

    Regarding the Office Depot and Staples deal, the MAC clause lays out the circumstances under which Staples can back out of its deal with Office Depot.

    By Brent Nyitray, CFA, MBA
  • uploads///SPLS ODP overview
    Miscellaneous

    Understand the basics of the Staples–Office Depot merger

    If another bidder tops the Staples bid, and Office Depot is unable to get shareholder approval, it will owe Staples a breakup fee of $185 million.

    By Brent Nyitray, CFA, MBA
  • uploads///HSP PFE biosimilars
    Miscellaneous

    Parsing the Hospira material adverse change clause, Part II

    A war that affects the economy as a whole is not a material adverse change, but a hurricane that takes out Hospira’s manufacturing facilities is.

    By Brent Nyitray, CFA, MBA
  • uploads///HSP PFE synergies
    Miscellaneous

    Parsing the Hospira material adverse change clause, Part I

    The material adverse change clause lays out the circumstances under which Pfizer can back out of its deal with Hospira.

    By Brent Nyitray, CFA, MBA
  • uploads///RGP ETP overlap
    Miscellaneous

    Why some overlap could trigger an antitrust review

    Typically, what the first step merger arbs will do to get a handle on the antitrust is to look at the 10-Ks of each company.

    By Brent Nyitray, CFA, MBA
  • uploads///RGP ETP map
    Miscellaneous

    Parsing the material adverse change clause

    The ETP–RGP deal and the MAC clause The MAC (material adverse change) clause is one of the first things that arbs look at. For the deal between Energy Transfer Partners (ETP) and Regency Energy Partners (RGP), the MAC clause lays out the circumstances under which ETP can back out of its deal with RGP. Let’s take […]

    By Brent Nyitray, CFA, MBA
  • uploads///RGP ETP ETP basics
    Earnings Report

    Background on Energy Transfer Partners

    Energy Transfer Partners owns natural gas transportation pipelines that receive natural gas from other mainline pipelines and gathering systems.

    By Brent Nyitray, CFA, MBA
  • uploads///RGP ETP timeline
    Miscellaneous

    RGP and ETP merger basics

    This article covers what you should know about the RGP and ETP merger.

    By Brent Nyitray, CFA, MBA
  • uploads///RGP ETP spread
    Miscellaneous

    Regency Energy Partners–Energy Transfer Partners merger arbitrage

    In merger arbitrage, the acquiring company generally buys the acquired company’s stocks and short sells them.

    By Brent Nyitray, CFA, MBA
  • uploads///FF rate
    Company & Industry Overviews

    Why liquid alts may be preferred in a rising rate environment

    Liquid alts provide a way to generate income while preserving capital in the face of an anticipated rise in interest rates.

    By Surbhi Jain
  • Financials

    Paulson’s bet turns sour as AbbVie reconsiders its Shire bid

    News reports in August noted that Renaissance Technologies LLC, Jana Partners, David Einhorn’s Greenlight Capital, Dan Loeb’s Third Point LLC, and Paulson & Co. posted losses in July.

    By Samantha Nielson
  • uploads///Illustration of Risk and Reward
    Tech & Comm Services

    An investor’s guide to risk arbitrage as a strategy

    Risk arbitrage as a strategy is basically the act of picking up nickels in front of a steamroller. When a deal successfully closes, you get a nickel. When a deal breaks, you lose a buck.

    By Brent Nyitray, CFA, MBA
  • uploads///Herfindahl Example
    Industrials

    Merger arbitrage must-knows: The basics of antitrust analysis

    Antitrust is usually the biggest risk for a deal to break. All mergers over a certain dollar threshold must pass muster from the antitrust authorities in the U.S. and if they do business overseas, the antitrust authorities there.

    By Brent Nyitray, CFA, MBA
  • uploads///preliminary proxy
    Tech & Comm Services

    Merger must-knows: Why the proxy statement is important

    If there’s a vote for the deal, the next step will be the release of the preliminary proxy statement. The proxy statement contains all the data in the merger agreement as well as some other important pieces of data.

    By Brent Nyitray, CFA, MBA
  • uploads///Effect of Timing on Arb Returns
    Tech & Comm Services

    Merger must-knows: The typical timeline for a friendly deal

    Typically, approaches end up with a deal. Why? The target board of directors has a fiduciary duty to shareholders to get the best price for the company.

    By Brent Nyitray, CFA, MBA
  • uploads///Merger Arb Return Example
    Tech & Comm Services

    Merger arbitrage must-knows: A typical stock merger spread

    Not all deals are cash deals, however. Often companies will issue stock in lieu of giving cash for a deal. This adds a layer of complication to the process and also some risk factors we need to consider.

    By Brent Nyitray, CFA, MBA
  • uploads///Merger Arb Return Example
    Tech & Comm Services

    Identifying and analyzing a typical cash merger arbitrage spread

    What are the components of a risk arbitrage spread? There are a number of factors that figure into a trade. Let’s look at a typical cash deal first.

    By Brent Nyitray, CFA, MBA
  • uploads///HFR Arb Index
    Tech & Comm Services

    Merger arbitrage must-knows: A key guide for investors

    Merger arbitrage, otherwise known as “risk arbitrage,” is an investment strategy that primarily focuses on mergers and capturing the spreads on announced deals.

    By Brent Nyitray, CFA, MBA
    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.