B) Is there still
an arbitrage opportunity for APs when an ETF's share price deviates from its NAV / share due to fees?
Brian Kelly, BK Capital Management, discusses volatility in the crypto markets as multiple exchanges create
an arbitrage opportunity for some investors.
I have written about
the arbitrage opportunities for multi-office law firms (See my post of June 15, 2006 on the use of associates from lower - cost cities.).
Not exact matches
Erich Spangenberg has always been good at spotting
opportunities for arbitrage, places in the market where there is a pricing spread that a savvy buyer can exploit
for profit.
Eventually it got easier to target the items that had the biggest
opportunity for arbitrage.
The absence of proper consumer protection was a major contributing factor to the present financial meltdown,
for «it has now become clear that abrogating sound state laws, particularly regarding consumer protection, created
opportunity for regulatory
arbitrage that resulted in a regulatory «race - to - the - bottom.
One of Cameron Herold's first entrepreneurial pursuits came during his teen years when he discovered an
opportunity for comic book
arbitrage.
Still, bitcoin sells
for a 20 - 30 percent premium in South Korean compared to other places, and this has spurred offshore trading to take advantage of
arbitrage opportunities as South Koreans buy bitcoin overseas and sell them back home.
Repeating the foreign - exchange turbulence of the 1930s hardly seems to be an attractive alternative,
for it is hard to see how Europe might adopt dual exchange rates, one
for trade and another
for capital movements, in a way that would not provide
opportunities for financial
arbitrage.
Just imagine instead of spending eight hours working
for an hourly wage or at your day job, you spend eight hours researching various
arbitrage opportunities and pulling the trigger.
In the non-system of floating exchange rates not balancing cross external accounts, this global trade liberalization has opened vast
opportunities for cost
arbitrage at the expense of workers in higher cost developed countries.
Do you like to look
for the loopholes and
arbitrage opportunities that others miss?
So an
opportunity for time -
arbitrage arises
for the investor with a longer horizon» James Montier
«Time
arbitrage - taking advantage of the
opportunity for long - term profit offered when short - term investors sell due to disappointing short - term macro or business progress - has been a major source of profitability at Pershing Square since the inception of the firm» Bill Ackman
«The inability of so many investors and managers to invest with a long term horizon creates the
opportunity for time
arbitrage - an edge in an investing approach that requires the commitment to long - term holding periods» Joel Greenblatt
Regardless, we believe an
arbitrage opportunity exists
for managers with a longer investment horizon: There are more
opportunities for differentiated performance when one holds securities
for longer time periods.
That's why there is no clear
arbitrage or leveraging
opportunities in dividend investing because employing these «trading» techniques doesn't work
for a 5 - 10 + year investment.
On the one hand, declining bond market activity and the persistence of low - risk
arbitrage opportunities imply liquidity is impaired, while, on the other, low volatility and high demand
for risky assets suggest that liquidity is alive and well.
For starters, the ECB's $ 489 billion in three - year loans at 1 % interest gives banks a free lunch
arbitrage opportunity (the «carry trade») to buy Greek and Spanish bonds yielding a higher rate.
The
opportunities for hedge funds to find dislocations and
arbitrage opportunities are far greater in soft commodities such as beef compared with hard commodities such as iron ore because the supply is more dispersed.
The current difference between these exchange rates is 50 %, which generates
opportunities for arbitrage and speculation.
To provide capital appreciation and regular income
for unitholders by identifying profitable
arbitrage opportunities between the spot and derivative market segments as also through investment of surplus cash in debt and money market instruments.
Getting back to the point, there is still an
opportunity for you make money from this deal even though it's already been announced through merger
arbitrage.
Your question could also be posed regarding cash & carry
for commodities in contango: If I can take delivery on the gold now, short the gold next year and make delivery then, paying the storage fees, is this an
arbitrage opportunity?
You've mentioned that banks are actually anxious
for this business, so clearly they've identified another
opportunity here — some kind of dividend tax
arbitrage?
Due to infrastructural complexities and limited
arbitrage opportunities, North American natural gas prices should remain depressed
for quite some time.
Closed - end funds do not have such mechanisms and offer greater
opportunities for arbitrage.
Chinese going private transactions have been a fertile hunting ground
for good merger
arbitrage opportunities the past couple of years.
Founded in 1949, Mutual Series has a long history as deep value investors with a very distinct style, searching aggressively
for investment
opportunities in undervalued stocks, merger
arbitrage situations, corporate reorganizations and distressed securities.
This creates the
opportunity for arbitrage.
At the same time, seeking out currency
arbitrage opportunities as part of our global investing service allows us to maximise and achieve additional returns
for you.
But, because ETFs are priced continuously by the market, there is the potential
for trading to take place at a price other than the true NAV, which may introduce the
opportunity for arbitrage.
There is the
opportunity for arbitrage in synthetically buying votes cheap and selling them dear.
Credit default swaps also allow
for arbitrage opportunities.
Efficient market theory makes several forecasts, some of which are borne out in practice, such as it is hard to earn speculative profits, and there is little or no
opportunity for risk - free
arbitrage profit.
This creates an
opportunity for positive
arbitrage on your policy loans.
If WTI crude oil is trading on the spot market
for $ 60 and the futures contract expiring two years hence is trading at $ 50, an
arbitrage opportunity could exist where one sells the $ 60 spot amount and goes long the $ 50 two - year forward price.
This worked out quite well
for Graham but, because its such an obvious
arbitrage opportunity, its very difficult to buy companies at this sort of discount anymore.
That's why there is no clear
arbitrage or leveraging
opportunities in dividend investing because employing these «trading» techniques doesn't work
for a 5 - 10 + year investment.
The relationship is not always linear but there won't be big differences because that will create an
opportunity for price
arbitrage.
In many markets high frequency traders looking
for arbitrage opportunities (
for example) will enter a few thousand orders a minute, some of these will be limit orders just off touch, others will be market orders to be immediately executed.
Something like zero coupon Treasury bonds versus associated interest strips presents more
opportunity for mild
arbitrage.
@event... The coupon rate on a 30 year fixed rate bond was probably higher than a comparable swap rate, which provided the
opportunity for this «
arbitrage.»
For calculating the Forex
arbitrage traders use special calculators who help to find the occurred
opportunities, but they need to be tested.
Of course, this valuation is wildly different,
for example, than the current USD 12,900 per acre valuation in Ireland (despite the collapse in Irish asset values) that I highlighted in a previous post — this valuation differential /
arbitrage opportunity is the obvious fundamental support
for this investment thesis.
If it is the same, then it is called a wash loan, and if it is less, then there is an
opportunity for arbitrage — earning a spread on your money.
There are occasionally really good values —
arbitrage opportunities — and years ago I would earn eBay Anything points
for successful Priceline hotel bids and transfer those points into Cathay Pacific AsiaMiles.
Spending $ 6,000 may either be huge, or not a big deal, depending on how you feel about manufactured spending, but,
for some properties, this can be an
arbitrage opportunity.
Alaska Mileage Plan is already a great program
for crediting Delta flights, so it's hardly surprising that they're not leaving this huge
arbitrage opportunity open.
An emissions price path with this property precludes all
opportunities for arbitrage because the discounted marginal cost of abatement is constant across time.