Then I would leverage the cash value into my real estate investments to create a second
arbitrage spread.
Personally, I would put it into a high cash value life insurance policy and enjoy the simple
arbitrage spread I've created.
Reuters has a good site here (check / change your region), and they / Bloomberg regularly publish
Arbitrage Spread tables.
That said, I noticed how wide
the arbitrage spread was on the deal, and the annualized rate was 40 % / year.
What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing
the arbitrage spreads by debt leveraging at less than 1 % interest cost?
-- Goethe What is to stop U.S. banks and their customers from creating $ 1 trillion, $ 10 trillion or even $ 50 trillion on their computer keyboards to buy up all the bonds and stocks in the world, along with all the land and other assets for sale, in the hope of making capital gains and pocketing
the arbitrage spreads by debt leveraging at less than 1 % interest cost?
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.
Last quarter, high corporate cash levels, low interest rates, and merger deal
spreads remaining at healthy levels served as a good tailwind to merger
arbitrage.
These lower rates provide a limited opportunity to help some clients profit from tax - rate
arbitrage by capitalizing on the
spread between 2017 and 2018...
In practical terms,
arbitrage funds seek
spreads between the current price of stocks and their forward value reflected in a futures contract.
The slang term for
arbitrage, the simultaneous buying and selling of the same asset in different markets in order to take advantage of different
spreads offered by brokers.
However the merger
arbitrage / event market is a very competitive one and those
spread usually don't come «for free».
With negative rates still in effect in Europe and the Fed's continuing on its current path of gradually raising rates, it makes perfect sense for European banks to continue to hold reserves at the Fed at a continuingly widening
spread to take advantage of the risk - free
arbitrage that currently exists.
The massive buying demand for Xerox CDS led the CDS
spreads to widen, which
spread into the corporate bond market through
arbitrage and eventually led the price of Xerox common equity downward.
The practice, also known as
arbitrage, is used to play the interest rate
spread to ultimately make money.
The foregoing position limits shall not apply to (1) bona fide hedge positions meeting the requirements of Regulation 1.3 (z)(1) of the CFTC and the rules of the Exchange, and shall not apply to
arbitrage positions an inter-commodity
spread positions subject to Rule 559.
On the other hand, thanks to the
arbitrage mechanism that all ETFs have and similar to open - end mutual fund valuation, the value of an ETF as traded stays very close to the net asset value of the underlying securities in the ETF, with a
spread of around 1 % if any.
It's a moot point anyways since the Yen should trade in a fairly wide bid - ask
spread against the Canadian dollar, which would make
arbitrage difficult.
Speculators can also engage in
arbitrage, which is similar to a
spread except that the long and short positions occur on two different markets.
Suppose we had seven guys in the room, an economist, a guy from a ratings agency, an actuary, a guy who does capital structure
arbitrage, a derivatives trader, A CDO manager, and a guy who does nonlinear dynamic modeling, and we asked them what the
spread on a corporate bond should be.
If a less specific group of bonds can be delivered to create a new unit, i.e., the bonds must satisfy certain constraints on issuer percentages, issue sizes, duration [interest rate sensitivity], convexity [sensitivity to interest rate sensitivity], sector percentages, option - adjusted
spread / yield, etc., then
arbitrage can proceed more rapidly, and premiums over NAV should be smaller.
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.
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.
Although the Journal did not describe the
arbitrage mechanism, its story claimed that narrowing
spreads between the bitcoin price and the GBTC price allowed traders to profit as they would when
arbitraging an exchange - traded fund (ETF) and its underlying assets.
However, there has been some significant price
spreads between a few exchanges leading people to try and obtain some
arbitrage.
Opportunistic investments are really being driven by an
arbitrage play, which is the
spread between cap rates and the cost of capital.