Rashesh Shah, Chairman, Edelweiss Group Oct 26, 2009
Treasury and arbitrage have been slow due to low and falling yields on the back of ample liquidity in the system ... How has the arbitrage business grown in the second quarter, and what were the average arbitrage yields ... Arbitrage yields have been 13-14% gross and 9-10% at the net level (after securities transaction tax and other transaction costs). (India Times)
Blackstone Said to Back Asia's Biggest Hedge Fund Startup in 2 1/2 Years Oct 23, 2009
It will also engage in the so-called capital structure arbitrage trades that exploit the divergence in value of different types of securities, such as preference shares versus ordinary shares, from their usual relationships ... Taylor began his investment career in 1996 on the European risk arbitrage desk of Goldman. (Bloomberg -- Asia)
Impact of the Global Financial Crisis and Its Implications for the East Asian Economy, Keynote Speech by Mr. Takatoshi Kato, Deputy Managing Director, International Monetary Fund, At the Korea International Financial Association, First International Conference Oct 22, 2009
However, this has to go hand in hand with the ability of supervisors to ensure that regulatory arbitrage does not emerge. In this context, regulatory and supervisory capacity needs to keep pace with market growth and rapid innovation. (IMF News)
Jaideep Mishra: Monetary policy Oct 21, 2009
Given that external trade is an increasingly significant part of our economy, it is inevitable that there would be heightened funds flow from abroad, as short-term trade finance, say, in the search for interest arbitrage and higher returns. We may take comfort from the fact that theres only limited scope for debt flows from abroad, given the severe restrictions. (India Times)
Small is Bankrupt Oct 21, 2009
The kind of regulatory and tax arbitrage that small countries once profited from is now subject to an international crackdown. In the age of global deregulation, large countries found it hard to stamp on small neighbours that were undercutting them with lower taxes or looser regulations. (The American Conservative)
Fed Chair Calls for Cuts to Record Deficit Oct 20, 2009
Labor arbitrage as perused by the "free traitors" has resulted in exactly what it was designed to do, concentrate wealth and power in as few hands as possible. by Marc_1986 October 19, 2009 12:48 PM EDT. (CBS News)
CAPS Strategy Review: How You Can Profit From Mark-to-Market Trauma Oct 20, 2009
As I dug deeper, I realized that my market-to-market trauma strategy wasn't exactly a direct arbitrage opportunity. For example, an insurer like XL takes a GAAP earnings loss from the markdowns, but it doesn't make a GAAP profit from the markups. (MSNBC -- Business)
Did "Smart Guys" Destroy Wall Street? Oct 17, 2009
Thats when you started reading about these geniuses from M.I.T. and Caltech who instead of going to graduate schoo 00004000 l in physics went to Wall Street to calculate arbitrage odds. . (CBS News)
Wind Power The Pickens Way Oct 16, 2009
Billionaire Trader To Europe Steve Schonfeld starts new statistical arbitrage groups to trade the European markets. Eli Broad's Passion For Art Billionaire pushes private collecting into the public eye. (Forbes -- Business)
Zimbabwe: I Was Pushed to Join Inclusive Govt - Biti Oct 15, 2009
"The Zimbabwe dollar has been an instrument of arbitrage and rent-seeking behaviour. It had become an instrument of theft, so we can't allow that," he said. Turning to the US$510 million loan from the International Monetary Fund, Minister Biti said the country's debt stood at US$5,7 billion. (allAfrica.com)
Rupee near 13-mth highs on weak dollar Oct 15, 2009
"If NDF arbitrage is squeezed, rupee should be back into 47-48 range to bring cheer to exporters," he added. Shares rose 0. (India Times)
When money is worthless Oct 14, 2009
The open interest in such markets is controlled by the traders, who arbitrage to close positions as the settlement date nears ... They will only buy commodities directly if they are afraid that the normal arbitrage mechanisms between the futures markets and the commodity markets will be overwhelmed by the volume of demand, so that investment in futures will prove less profitable than it "should". (Asia Times Online)
Ex-Goldman Trader, Deephaven Asia Head Bhatia Plans `Isometric' Hedge Fund Oct 12, 2009
The fund will also exploit mispricing of securities issued by companies involved in mergers and acquisitions, and engage in so-called capital structure arbitrage trades which tap the divergence from historical relationships of different types of securities issued by the same company, he added. Theres a lot of corporate restructuring in this environment, Bhatia said. (Bloomberg -- Asia)
Indiabulls Power Gets $1.1 Billion of Bids in Initial Share Sale in India Oct 12, 2009
Eight investors, including Copthall Mauritius Investment Ltd. and BNP Paribas Arbitrage, bought a combined 61. 2 million shares at 45 rupees apiece, the company said in a statement to the on Oct. 9. (Bloomberg -- Asia)
Visa's New Goal Oct 10, 2009
Billionaire Trader To Europe Steve Schonfeld starts new statistical arbitrage groups to trade the European markets. Markets CEO on Visa's financial education campaign and reaching emerging markets. (Forbes -- Business)
Mortgage Servicing Firms Have Met Administration's Goals: Source Oct 8, 2009
You've committed fruit-stand arbitrage. Arbitrage is exactly that: the selling of the same item between two different markets to make a profit off the mathematical differences in price ... Arbitrage happens when you get a stock, usually a common one like General Electric that's traded on multiple markets (Japan, Hong Kong, U.S., etc). (Fox News)
Tin tests Financial Services Authority s mettle Oct 7, 2009
If the United States decides to impose tougher restrictions, it is seen as a competitive opportunity for London to attract more business (an unfortunate replay of the regulatory arbitrage between financial centres which played such a damaging role undermining banking regulation in the run up to last years crisis). In their defence, regulators and exchanges note that for every long (buyer) there was a willing short (seller). (The Star Online, Malaysia -- Business)
"Too Big to Fail" Must End for All: FDIC Chief Oct 5, 2009
And by applying the resolution authority more broadly outside of normal regulated bank holding companies, it would help shrink the shadow banking system by discouraging regulatory arbitrage under which financial firms shop for the most lenient supervisors ... Bair added that reducing the shadow banking system and regulatory arbitrage is her top priority for the U.S. Congress as it works on legislation to revamp U.S. financial oversight this fall. (ABC News -- Wire)
A new dey coming? Oct 3, 2009
Imagine not having to worry any more about your exchange rate the billions and billions of dollars or dey which will be saved by not having to hedge, trade, exchange or arbitrage. Imagine how much easier it will be for planning. (The Star Online, Malaysia)
Pellegrini 80% Return Proves Paulson Protege No Fluke at Macro Hedge Fund Oct 3, 2009
First was merger arbitrage, a strategy in which traders typically buy the stock of a possible takeover target and short that of the acquirer. The other was event arbitrage -- wagering on corporate developments such as earnings surprises and stock buybacks. (Bloomberg)
Fixing an Out-of-Whack Global Economy Oct 2, 2009
The IT-enabled trade in services has brought tremendous benefits to developing Asia, but the cross-border labor arbitrage hasn't helped white-collar workers in leading economies. Globalization was supposed to lift all boats, but labor's share of GDP in the U.S., Japan, and Europe sank to an all-time low of 54% in 2007. (BusinessWeek)
Reality, where art thou? Sep 30, 2009
These people were thought by the market to be geniuses - the Nobel prizes of two of its directors were frequently cited - and so they were allowed by the market to leverage as much as they liked, in the belief that their arbitrage trades "had" to come right. In the event, the relationships that LTCM relied upon turned out to be short-term or spurious, and so LTCM became insolvent. (Asia Times Online)
Agility key to staying afloat during crisis Sep 30, 2009
India offers arbitrage advantage in terms of cost, as clinical testing for new drugs is less expensive in countries like India and China compared with the Western countries, she said. AIRASIA. (The Star Online, Malaysia -- Business)
Paying to save trees: Last gasp for the forest Sep 25, 2009
Without such standards, he says, the result could be sustainability arbitrage , where project developers and companies flock towards less sustainable schemes that offer cheaper credits. There are also concerns about market-based schemes. (The Economist)
Nonprofits Gamble - and Lose (The Nation) Sep 25, 2009
Nonprofits Gamble - and Lose - Yahoo. Search Type Choose a search type from the items below. (Yahoo News -- Press Releases)
RebelBetting Beats the Bookmaker - Every Time Sep 22, 2009
"Our first users that stuck to it the first two weeks are all now making profits between 8 and 15 % every month," says Simon Renstrom, CEO of ClaroBet AB. "Arbitrage betting is almost risk-free, the only investment is time and dedication.". The technique, arbitrage betting, is a well-known practice in the financial world ... RebelBetting is their first product, an award-winning tool that finds sports arbitrage odds that make a guaranteed profit. (Yahoo! Wire -- Entertainment News)
Dodd Plan for Single U.S. Bank Regulator May Spark Fight with Frank, Obama Sep 21, 2009
This system preserves the regulatory arbitrage that allows institutions to pick the oversight scheme that benefits them the most. . (Bloomberg -- US)
Six Sigma still a cornerstone of Indian cos' quality DNA Sep 18, 2009
Labour arbitrage is old hat; its now about what we can do to actually value-add to client processes, says Singh, head of Service Delivery at Firstsource. Today, global Six Sigma awards keep coming Firstsources way and 90% of its operational leadership is Green Belt (operates in support of a Six Sigma Black Belt) trained. (India Times)
Public Information Notice: IMF Executive Board Discusses the Management of Crisis-Related Interventions in the Financial System Sep 16, 2009
This would help minimize unintended distortions and scope for cross-border and cross-sector arbitrage, as well as any negative effects on cross-border movement of capital. The Fund has a central role to play in monitoring macro-financial risks and vulnerabilities, tracking the impact of sovereign asset and liability management policies, giving guidance on balance sheet restructuring and macroeconomic unwinding, serving as a forum, and contributing to a clearer global understanding of these... (IMF News)
From the archive: The death of Drexel Sep 16, 2009
Drexel's collapse has also confirmed for now the end of take-over mania, risk arbitrage and merchant banking, the businesses of betting on, lending to and investing in takeovers. These were the most profitable areas on Wall Street during the late 1980s. (The Economist)
Wall Street's new shape: Rearranging the towers of gold Sep 12, 2009
Kenneth Rogoff, a Harvard economist and an authority on financial crises, argues that Wall Street s resurgence merely reflects a temporary arbitrage: systemically important banks can make big profits taking big risks with cheaply borrowed funds, thanks to the taxpayer s invisible wallet in the form of guarantees, while the authorities turn a blind eye. Some may even be gambling for salvation. (The Economist)
NJIT expert on market failure says letting Lehman go was good thing Sep 11, 2009
Prior to joining NJIT, Ehrlich, an assistant professor, was a government arbitrage trader at Salomon Brothers and a senior managing director at Bear Stearns. He received his bachelor's degree from Yale University and PhD from Princeton University. (EurekAlert!)
All that glisters looks very much like gold Sep 7, 2009
So a near 14 per cent arbitrage between Corvette's share price and the Cape Lambert scrip-only offer has opened up. It is making things all too easy for Cape Lambert with its takeover bid. (Sydney Morning Herald -- Business)
Tighter market rules considered Sep 4, 2009
The agencies will seek to close gaps in oversight, eliminate duplicative rules that allow for regulatory arbitrage, and bring consistency to the supervision of similar products, firms, and markets, Gary Gensler, head of the Commodity Futures Trading Commission, said yesterday at a joint meeting of the two agencies in Washington. It s important that we at the CFTC and SEC all check turf at the door and think of what s best for the American public, what s best for the markets, Gensler said. (Boston Globe)
Turner backs bank 'death' plans Sep 3, 2009
Lord Turner suggested banks should no longer benefit from "tax arbitrage". The boss of the UK financial watchdog has backed proposals to to make banks plan for their own collapse. (BBC News -- UK)
India to talk financial stability at G20 Sep 3, 2009
Finance ministers and central bank governors would also discuss how to better regulate credit rating agencies and how to get more countries to follow transparent and globally accepted governance principles (reducing regulatory arbitrage). After the G20 meet in London, heads of states from the 20 industrial and developing nations and a few from outside this group are expected to meet at Pittsburgh in US to take forward the commitments on stimulus measures and regulation of financial sector. (India Times)
Bias against innovation Sep 2, 2009
Perhaps the best reason for regulators to be suspicious about innovation is that so much of it in the modern world is aimed at facilitating regulatory and tax arbitrage. That was certainly true of the banks off-balance sheet securitisation activity. (FT.com -- Markets)
Dream debut for interest rate futures Sep 1, 2009
Dealers said the market had priced the futures in such a way that there was very little opportunity for arbitrage. A trader can either buy a 12-year bond now holding on to it till December 2009, or alternately buy a futures contract expiring in December, funding it through the money market the gains made would be the same, said a dealer at a bond house, explaining how the pricing was right on the yields curve. (India Times)
Zimbabwe: Arrogance Stifling Implementation [editorial] Aug 29, 2009
com: Zimbabwe: Arrogance Stifling Implementation (Page 1 of 1). Zimbabwe: Arrogance Stifling Implementation. (allAfrica.com)
Nasdaq and Brazilian exchange to discuss partnership Aug 27, 2009
They will take advantage of increasing electronification open outcry trading ended this year and co-location, in which big customers can install computer servers inside the exchanges premises to enact high-speed automated trades that seek out arbitrage opportunities between different asset classes. BM&F Bovespa is already the worlds fourth largest exchange by market value, bigger than better-known exchanges such as , the and Nasdaq OMX. Its market value combined with that of... (FT.com -- Markets)
Harvey Pitt: 'Too Big To Fail' All Wrong Aug 26, 2009
However, Pitt believes the path to regulatory efficiency lies not in creating more regulatory agencies but in consolidating and combining the ones that already exist to avoid regulatory arbitrage shopping for the least regulation, a common practice. Unfortunately, he says, the proposals now on the table will dramatically increase the amount of regulatory bureaucracy. (Newsmax)
Tocoms new platform off to a slow start Aug 24, 2009
Tocom is also considering extending trading hours beyond 11pm to 2am so investors can exploit arbitrage opportunities between Tocom and US commodity exchanges, and also increase the number of local retail investors, who tend to trade at this time. The Financial Times Limited 2009. (FT.com -- Markets)
Integrity deficit has its price Aug 20, 2009
The theory of marginal utility is anchored with the calculus of disaggregated arbitrage on changing supply and demand relationships ... With globalization, these groups can also manipulate prices through regulatory arbitrage in unevenly regulated markets around world ... In disconnected labor markets under trade globalization, demand for workers internationally is determined by cross-border wage arbitrage while demand for workers domestically is governed by uneven market power between capital... (Asia Times Online)
Rein in expenses before implementing GS tax Aug 20, 2009
Maybe the Government should look to raise revenue by getting some of the arbitrage profit itself. One way is by charging more for the approved permits (APs) it sells to the car industry, especially the open APs which are sold for a few ringgit compared with the market value of thousands of ringgit. (The Star Online, Malaysia -- Business)
Muni Bonds: Why States Are Chasing Retail Investors Aug 20, 2009
Since the collapse of muni arbitrage funds and the retreat of other institutional buyers, for some states it's been a matter of survival ... Boosting interest among retail investors has been a matter of survival for some states since the collapse of muni arbitrage funds and the retreat of other institutional buyers in early 2008 ... Muni arbitrage funds were a vehicle for hedge fund managers to buy long-dated, fixed-rate muni bonds, and then use the coupon payments as collateral to back... (BusinessWeek)
Premix Mixup Hiccups Aug 20, 2009
These bigwigs, sometimes members of grandly named landing beach committees, are, obviously, shameless beneficiaries of a state of information arbitrage that has resulted from discrepancies in the availability of information to different parties ... The landing beach committee bigshot, on the other hand, has timely access to this information, and the means to profit from it, by mixing this information advantage with another kind of arbitrage: the artificial price difference between... (Ghana Web, Ghana)
Thomson CDS holders may boycott ISDA auction Aug 19, 2009
ISDA designed the bucket approach to settlement a series of mini auctions broken down by maturity of CDS contract as part of its Small Bang protocol to stop CDS holders from engaging in deliverables arbitrage. The new structure would prevent counterparties from delivering long-dated bonds that may be trading at a discount to shorter-dated paper regardless of the maturity of their CDS contract. (FT.com -- Markets)
Computer vs trader Aug 17, 2009
Sophisticated computer codes are able to spot even the smallest of arbitrage possibilities as they can run calculations faster and decide whether a particular market imperfection would be profitable ... Superfast computers would certainly be in a better position than day traders when it comes to spotting arbitrage opportunities. (India Times)
Bank on inflation Aug 14, 2009
This time, because it involves a commodity, I figure that it has the added benefit that slimy insiders/bullion banks can now do all kinds of slimy arbitrage tricks by buying government gold at a (theoretically) falling market price as 400 tons a year come barreling into the market to swamp demand with a deluge of supply, as well as leasing government gold at almost zero percent rates, maybe somehow running it through some exchange traded funds that are shorted for some reason that I don't... (Asia Times Online)
Avenir Diversified Income Trust Announces Second Quarter 2009 Results Aug 14, 2009
The Elbow River Marketing Group had a strong second quarter in its base Liquefied Petroleum Gas ("LPG") business as butane presales and spot arbitrage opportunities, especially in propane, led to results ahead of expectations and ahead of the previous year's quarter ... The overall economic situation and new production from the U.S. Rockies has resulted in unusual pricing and supply/demand situations that allowed Elbow to capture arbitrage opportunities ... Volatile markets and nontraditional... (CCNMatthews Press Releases)
Nigeria: Addressing a Sea of Corporate Debts [editorial] Aug 10, 2009
A whole myriad of options adopted, discarded, re-adopted and fine-tuned has led only into one direction: speculation, arbitrage and rent-seeking activities at the expense of production and the real sector. This has led to the development of a swashbuckling mentality which has continuously put pressure on the naira. (allAfrica.com)
Roark places bets on franchised brands Aug 9, 2009
It s only sold two companies, Pike Nurseries and U.S. Arbitrage Finance, and has no plans to sell more in the near-term, he said. As it considers acquisitions, Roark executives said they plan to build on their expertise in franchised companies. (Atlanta Journal-Constitution -- Business)
Goldman Sachs, the lords of time Aug 5, 2009
With the ECNs, any qualified trader can put his own individual bid/ask spread on the board; this competition acts to narrow the spread through arbitrage. Then again, unlike the standard practice with the specialists, on the ECNs, the traders putting up spreads they're willing to buy and sell stock at are under no obligation to keep them there should prices start to move so violently that operating a profitable (for the trader) two-way market can't be maintained. (Asia Times Online)
Engineering services outsourcing finds favour with Indian tech firms Aug 4, 2009
Frost and Sullivans automotive and transportation senior director VG Ramakrishnan said that companies from Europe and US are looking to increase their activity in India because of cost arbitrage and talent. The cost arbitrage is like $25 per hour in India and $75 per hour in US. The value of contracts that will come to India typically start from Rs 200- Rs 300 crore. (India Times)
$100 Million Payday Poses Problem for Pay Czar... Aug 4, 2009
Mr. Hall and his colleagues -- there are about 55 in the Westport office, and handfuls in London and Singapore -- specialize in a variety of hedging and arbitrage techniques. Generally, Phibro looks for anomalies in the market and pounces, taking advantage of unusual spreads between the spot price of oil and the price of an oil futures contract. (The Drudge Report)
Heard the whisper about integrity? Jul 31, 2009
Even discounting such extreme behaviour as insider trading or spreading false information to manipulate share prices for direct personal gain, there is a whole other level of information arbitrage that. operates in markets and is near impossible to police. (Sydney Morning Herald -- Business)
No escape for Fed Jul 30, 2009
Speculation will continue to be fueled by near-zero interest rates, affording speculators huge arbitrage potentials, or free lunches, between money and non-money assets. Rising public debt could weigh on future economic growth. (Asia Times Online)
High-Frequency Traders Say Speed Is to Everyone's Advantage on Wall Street Jul 29, 2009
8 billion in annual profits from equities and derivatives market making and arbitrage, according to Tabb. Among the largest are hedge funds Citadel Investment Group LLC, D.E. Shaw & Co. and Renaissance Technologies Corp., as well as the automated brokerages , and. (Bloomberg -- Canada)
Copper Peaking as Inventories Signal Market Top With China Demand Slowing Jul 29, 2009
The arbitrage window has closed because the domestic price is no longer higher than the overseas price. That too will lead to lower imports. (Bloomberg)
Time to buy/sell in real estate mkt? Jul 26, 2009
However, for investors entering the market, this time should be evaluated keeping the various arbitrage options that they can take advantage of in the current scenario. As far as selling is concerned, this is not a sellers market. (India Times)
High-speed whizzes distort sharemarket trading Jul 25, 2009
"But we're moving towards a two-tiered marketplace - of the high-frequency arbitrage guys and everyone else. People want to know they have a legitimate shot at getting a fair deal. Otherwise, the markets lose their integrity.". The New York Times. (Sydney Morning Herald -- Business)
Millennium India Acquisition Company Announces Successful Completion of the Initial Phase of the Joint Venture Between SMC Group and Sanlam Investments Jul 23, 2009
F. Jacob Cherian, Chairman and CEO of MIAC said, "The individually strong brands of SMC and Sanlam, coupled with the experienced teams, will set new standards in the financial services space in India and contribute to the success of this new venture in tapping the opportunity. Further, the barriers to entry in this business -- SMC has already obtained a host of valuable licenses to run businesses in equities and commodities broking, investment banking, arbitrage, distribution of third-party... (PR Newswire)
Credit Suisse reports 29 percent rise in 2Q profit Jul 23, 2009
Convertible Arbitrage funds continued to post the best performance of all the strategies in the Broad Index, with 4 ... 95% cumulative performance YTD. As equity markets recovered in the second quarter, managers began to profit again from the volatility arbitrage aspect of the strategy ... The Convertible Arbitrage, Emerging Markets, and Global Macro sectors have received increased attention as investors began to regain their appetite for risk and global markets rallied. (Fresno Bee -- Business)
Shielding the system from shock Jul 22, 2009
Admittedly, there are difficulties with all proposals to restrict the scope of "risky" banking, especially in the context of a global economy with free capital mobilit 00004000 y. As is frequently pointed out, unless banking regulations are identical across frontiers, there will be plenty of scope for "regulatory arbitrage". Similarly, banks would have incentives to "game" capital-adequacy requirements by manipulating how capital and assets are defined. (Sydney Morning Herald -- Business)
BlackBerry, Natasha Indexes Need Summer Attention: Matthew Lynn Jul 22, 2009
If they are flanked by nannies taking care of everything while the woman of the house works on her tan, you can assume those long-short currency-commodity arbitrage strategies are raking in the cash again. The Paperback Index: Take a good look at what your fellow guests are reading around the pool. (Bloomberg -- Columnists)
