Topic · Systematic Strategies & Alpha
← All topicsEvent-Driven
25 articles · 3 checkpoints · 15 deeper reads · 7 reference notes
A standalone topic: it is on no roadmap, so read it on its own terms.
Every article, in reading order
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Merger arbitrage's core number is the gap between a target's trading price and the announced deal price, small and steady when the deal is likely to close, and the whole strategy's justification for existing when you weigh it against what happens if the deal breaks instead.
The standard toolkit for asking 'did this event actually move the stock, and by how much, once you subtract out what the market did anyway?', the same abnormal-return, event-window machinery whether you're studying earnings, index adds, or M&A announcements.
In a restructuring, one class of claims is only partly covered by the company's value, that class is the fulcrum, and it is the one that receives the reorganised equity. Loan-to-own is the deliberate purchase of that class at a discount in order to end up owning the business.
Then the rest