How To Use Arbitrage In A Sentence
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The effect of interest arbitrage is to make it irrelevant where a person invests or borrows.
International Finance: The markets and financial management of multinational business.
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Global labor arbitrage is hard at work narrowing the international wage gap among educated workers.
Wages Move Toward Equilibrium, Arnold Kling | EconLog | Library of Economics and Liberty
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Osons le dire: nos arbitrages ont une forme maniaco-dépressive avec de fortes amplitudes émotionnelles pouvant conduire à la folie ou au suicide cf.
Archive 2009-04-10
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The dropoff is Farallon's sharpest by far since Mr. Steyer, a former Goldman Sachs risk-arbitrager, started the firm in 1986 in partnership with San Francisco buyout firm Hellman
Farallon Regroups After Knockdown
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The most important form of programme trading is the buying and selling of shares as part of index arbitrage.
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The first is the cost of research and the need for profits to justify such costs; the second is the absence from virtual markets of the purely profit-based phenomenon of arbitrage.
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Institutional shareholders including arbitrageurs traditionally do not respond to offers up until close to the deadline.
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Hedge funds love deal arbitrage.
Times, Sunday Times
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Here we look at the concept of arbitrage, how market makers utilize ‘true arbitrage,’ and, finally, how retail investors can take advantage of arbitrage opportunities.
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But I do believe Google went after "arbitrageurs" because they felt the quality of those ads and results lead to a poor search experience.
Search Engine Roundtable
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This delayed cash flow will alter the net present value of an arbitrage transaction which involves buying shares.
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We show a band around the interest parity line within which round-trip interest arbitrage is unprofitable.
International Finance: The markets and financial management of multinational business.
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He steals he, um, arbitrages the California market to the tune of a million bucks or two a day" was the description of one colleague.
McCain In 2004: "Bin Laden May Have Just Given Us A Little Boost"
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As well, I wholly agree with your assessment of global labor arbitrage, e.g. migrant worker remittances or Richard Florida's 'plug-and-play communities', the impact of which I believe has been underrated, particularly wrt global capital movement.
Policy in a Fog, Arnold Kling | EconLog | Library of Economics and Liberty
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The fund is concerned that if some countries pull far ahead of others, companies will exercise regulatory arbitrage.
Times, Sunday Times
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Yes," replied the townsman, "I am deputed by the people of St. Michel to tell you that they are good servants of the king, but that they do not mean to have any gabel, or marks on pewter or tobacco, or stamped papers, or _yreffe d'arbitrage_ (arbitration-clerk's fee).
A Popular History of France from the Earliest Times, Volume 5
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As Arnold has pointed out repeatedly, there were regulatory arbitrages available to financial insitutions.
Financial Regulation and Public Choice Theory, Arnold Kling | EconLog | Library of Economics and Liberty
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If this were not so, there would be interest arbitrage.
International Finance: The markets and financial management of multinational business.
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So I am not inclined to spend Labor Day weekend as a risk arbitrager, worrying about the twists in either the Potash or 3PAR deals.
In Merger Frenzy, Less-Obvious Stocks Could Pay Off
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At the same time it asserts that there will not actually be any opportunity to engage in arbitrage because markets are efficient.
The Volokh Conspiracy » Greenspan’s ‘The Crisis’ and Modigliani and Miller
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The arbitrageur does this, of course, to make a profit but the effect of arbitrage is to equalize prices or interest rates between markets, provided there is completely free movement of capital.
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Based on the assumption of no arbitrage, an accurate WACC formula is derived.
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We show a band around the interest parity line within which round-trip interest arbitrage is unprofitable.
International Finance: The markets and financial management of multinational business.
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Other tactics involve deep leveraging, programme trading, swaps, arbitrage and derivatives that retail investors find difficult to master.
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Nous sommes loin de la théorie des arbitrages rationnels.
Archive 2009-04-10
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So why do you think pay-per-click arbitrage is going to do it for you?
2010 March | Johnny B. Truant
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The King of financial arbitrage capitalism is the financial arbitrageur.
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To make the kind of profit a normal arbitrageur makes on a 1/4 cent margin, you have to move ridiculous amounts of money, amounts that the market will pay a * lot* of attention to.
Anti-Finance Bias, Arnold Kling | EconLog | Library of Economics and Liberty
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A class of investors called arbitrageurs, who make their living practicing the art of arbitrage, are responsible for this.
Warren Buffett and the Art of Stock Arbitrage
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All parties are happy - if the stock increases our arbitrageur makes up to 1% on the trade and if it falls he makes no loss and no gain.
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Hedge funds love deal arbitrage.
Times, Sunday Times
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In January 1998, LTCM argued that its capital had become too large - there were fewer market opportunities that could be arbitraged in size and yield the required returns.
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Therefore, these market makers have considerably lower transactions costs than other potential arbitrageurs.
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Interest arbitrage also involves two foreign exchange transaction costs, since the borrowed currency is sold spot and then bought forward.
International Finance: The markets and financial management of multinational business.
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Where there is differential pricing, e-tailers and consumers can arbitrage the difference to their advantage, by importing goods from the cheaper country.
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This is known as covered interest arbitrage.
International Finance: The markets and financial management of multinational business.
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Again, they are presumed to choose the most advantageous alternative, and this will tend to restore the no-arbitrage condition.
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In pure or riskless arbitrage transactions, the purchase and re-sale of the asset in question are conducted simultaneously, thus the arbitrageur does not risk any of their own funds.
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These ratios have traditionally been used to show stock market tops and bottoms, but they have lost some utility lately because of the predilection to arbitrage skews the results.
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In a forthcoming article in the Yale Journal on Regulation, Levitin argues that regulatory arbitrage is inevitable in current financial regulatory system that features multiple regulators for essentially equivalent institutions: financial institutions will seek out the most permissive regulator, and regulators have incentives to engage in laxer regulation to attract regulatees.
Archive 2009-06-01
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One way the pros try to take advantage of high implied correlation is by using an arbitrage strategy called a dispersion trade: They buy options on an individual stock and sell options on an ETF.
Beating the Herd on the Street
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Transaction tax will finish day traders, jobbers and arbitragers, and cripple the share markets.
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Interest arbitrage also involves two foreign exchange transaction costs, since the borrowed currency is sold spot and then bought forward.
International Finance: The markets and financial management of multinational business.
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Outside Gadgetzan, I can't see how I can swap the commodities from IF to Og, which is what I need to do if I'm gonna price arbitrage.
Atanarjuat
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Provided the futures price lies somewhere within this band, no arbitrage opportunities exist.
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This, coupled with looser regulations, will begin to attract regulatory arbitrageurs and Volcker Rule escapees.
John Bates: 2012 Predictions: What to Expect in Capital Markets
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Rather than a strategy drift, however, Platinum says the Black Elk bet demonstrates its flexibility in opportunistic investments, while maintaining conventional commodities trades like calendar or location arbitrages.
Platinum Partners Strikes Black Gold in Unloved Wells
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The justification for this assumption is that the arbitrage transaction is riskless, and so repayment is guaranteed.
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As well as searching for arbitrage opportunities, computers can also be used to initiate programme trades.
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Markets typically include a provision for resolving disagreements by returning the product or through arbitrage in other cases.
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But, because observable price inefficiencies tend to be quite small, pure arbitrage requires large, usually leveraged investments and high turnover.
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Dan said, Outside Gadgetzan, I can't see how I can swap the commodities from IF to Og, which is what I need to do if I'm gonna price arbitrage.
Atanarjuat
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The other is the Mephistophelean financier and arbitrageur Gordon Gekko, he of the power braces and the shark-like half-smile, half-snarl.
Wall Street: Money Never Sleeps – review
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It is also possible that the shares chosen for inclusion in the arbitrage portfolio are those which have a high price elasticity.
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Attracted by the opportunity for arbitrage with the stock market, hedge funds have also been big buyers of convertible bonds.
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On this open - air exhibition, is especially noticeable by a grey head, he is the Thai country dumb show arbitrage appearance manufactures the artist: That good lotus fragrance line.
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Provided the margin payments earn interest at the risk-free rate, the resulting no-arbitrage condition is unaltered.
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It initially professed to arbitrage international fixed income markets but over time got significantly into equities.
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In the 1980s, arbitrager Ivan Boesky used the lavish lobby of New York's Plaza Hotel to exchange cash for tips in what would become the most famous insider-trading scheme of the era.
From the Plaza Hotel to Starbucks, Illicit Acts Find New Home
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The justification for this assumption is that the arbitrage transaction is riskless, and so repayment is guaranteed.
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When prices deviate from this theoretical benchmark, money moves quickly to arbitrage away any differences.
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The informational advantage of the largest risk arbitrageurs is not so compelling in situations such as long-term liquidations, spinoffs, and large friendly tender offers.
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The advice to diversify is based upon the usual equi-marginal rule – - if you find yourself with a higher marginal utility in one state of nature than the other, you want to keep transferring wealth until this “utility arbitrage” disappears.
Superbowl Wrap-Up: A Guest Post - Freakonomics Blog - NYTimes.com
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Because of their ability to provide arbitrage among the complex monies of China, they coexisted with modern banks until the reorganization of the currency in 1933 to a silver dollar rather than the Chinese tael.
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Finally, the paper emphasizes the application of portfolio selection theory to compound arbitrage and give a example which is solved by projection algorithm.
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He examined whether a mispricing triggered index arbitrage transactions within a few minutes.
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Too often they reflect the objectives of tax avoidance and regulatory arbitrage.
Times, Sunday Times
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So the stock market is a great arbitrageur between the present and the future.
Transcript: John Bogle
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From my perspective, all participants failed to see the potentially extreme dynamics of a market dominated by traders and arbitrageurs with only limited participation from long term investors.
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There are two types of programme trading - index arbitrage and portfolio insurance.
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This price change will produce a matching change in the weights of an arbitrage portfolio.
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Other institutions arbitrage returns on bonds or loans with relatively high yields through securitizations.
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The negative values frequently exceed the spread-related costs of an arbitrage strategy designed to exploit the mispriced callable bond.
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So to avoid significant arbitrage profits, the futures and spot prices must converge.
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If a lot of people pursue a value strategy, value opportunities will soon be arbitraged away.
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This delayed cash flow will alter the net present value of an arbitrage transaction which involves buying shares.
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While my classmates signed up for on-campus 'face-to-faces' with recruiters from Wall Street brokerage firms (becoming an 'arbitrageur' was all the rage then, even among students who as juniors had vowed to spend their lives dancing or composing), I scanned the horizon for another test to take, another contest to compete in.
Anis Shivani: Does the Ivy League Turn You Into a Moron? Walter Kirn Critiques Princeton in "Lost in the Meritocracy"
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Therefore you should be able to predict--you should predict at the beginning, at any point in time that over the next decade the returns of those markets will be the same because of the efficient market idea or the idea that a arbitrageur between the past and future.
Transcript: John Bogle
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This strategy tries to exploit the relative prices of the convertible bond and the stock: the arbitrageur of this strategy would think the bond is a little cheap and the stock is a little expensive.
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In effect they act as regulatory arbitrageurs, reaping the rewards of fast-moving financial markets without the burden of the regulatory controls that banks face.
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Some estimates of the round-trip transactions costs involved in stock index arbitrage are set out in Table 5.1.
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Since pricing would become transparent and structural advantages would be arbitraged away, competitive advantage would stem more and more from identifying and satisfying customer needs.
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The arbitrageur tries to capture the difference, or ‘spread,’ between the target's current price and its acquisition price.
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The fund is concerned that if some countries pull far ahead of others, companies will exercise regulatory arbitrage.
Times, Sunday Times
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Finally, the paper emphasizes the application of portfolio selection theory to compound arbitrage and give a example which is solved by projection algorithm.
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It's a worldwide market, and in a sense it's a market in which interest rates in various different localities and for various different instruments are all arbitraged.
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The same lawyers told him to bring charges to a civil court and the sports court of arbitrage.
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It is "mindful of regulatory arbitrage possibilities at the boundary", which translates into English as an acknowledgment that financial professionals who make a handsome living from wriggling around rules and taxes will soon enough find the means to connect notionally separate divisions.
Banking: Big brains, small ideas | Editorial
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The effect of interest arbitrage is to make it irrelevant where a person invests or borrows.
International Finance: The markets and financial management of multinational business.
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The arbitrageurs exploit such ‘discounts’ by buying up shares in the funds and then forcing trusts to buy back the shares at a higher price, making a quick and easy profit.
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There are two types of programme trading - index arbitrage and portfolio insurance.
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Attracted by the opportunity for arbitrage with the stock market, hedge funds have also been big buyers of convertible bonds.
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The speculator is betting on changes in the price, while the arbitrageur is betting on changes in the spread (difference between two prices).
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Pat: I mean smaller markets which are charged different prices and between which arbitrage is banned. i.e. there is a USA price, a Canada price, a Russia price, and a Zimbabwe price (decreasing in that order).
Matthew Yglesias » The Reimportation Farce
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If the mutually-owned insurer's investment trust holdings flood on to the market, the oversupply could depress share prices in many funds and allow arbitrageurs to build aggressive stakes.
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In today's stage of ‘Financial Arbitrage Capitalism’ the U.S. financial sector has accumulated unprecedented leverage, beholden to the vagaries of the repo and money market for continued refinancing.
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While my classmates streamed into on-campus interviews with Wall Street brokerage firms (becoming an "arbitrageur" was all the rage then, even among students who as juniors had vowed to spend their lives painting or composing), I cast about for another test to take, another contest to compete in.
Lost in the Meritocracy
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Ivan Boesky, the former arbitrager, agreed to pay $100 million to settle SEC charges, but half of that amount was disgorgement of illicit profits.
Rajaratnam Ordered to Pay Record SEC Penalty
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They are arbitrageurs, that require split-second communications.
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We show a band around the interest parity line within which round-trip interest arbitrage is unprofitable.
International Finance: The markets and financial management of multinational business.
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The introduction of a trading lag of half a day reduced, but did not eliminate, these arbitrage profits.
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Therefore, not unexpectedly, transaction costs discourage this covered interest arbitrage.
International Finance: The markets and financial management of multinational business.
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The most important form of programme trading is the buying and selling of shares as part of index arbitrage.
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OK, he, um, he arbitrages the California market to the tune of a million bucks or two a day.
Joseph A. Palermo: Peter Baker and David Herszenhorn: Wall Street Reform Reporting Lacking
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It is a disequilibrium situation which can not survive as it offers investors a profitable arbitrage opportunity.
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The introduction of a trading lag of half a day reduced, but did not eliminate, these arbitrage profits.
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The arbitrageur will sell the over priced bond to the dealer at the bid price, and buy the under priced bond from the dealer at the ask price.
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Because traditional pricing methods are based on the assumption of no arbitrage, well balanced and complete market, there are many restrictions in the pricing process.
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One thing is certain: international differences in the scope and nature of regulation will remain, presenting opportunities for regulatory arbitrage.
Times, Sunday Times
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Again, they are presumed to choose the most advantageous alternative, and this will tend to restore the no-arbitrage condition.
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While the arbitrage spreads measured using bid and ask prices are smaller than using only bid prices, the apparent arbitrage opportunities in the first year were not eliminated.
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Didn't he torture a third and also apparently not guilty arbitrager until he pled guilty to a single count of mail fraud just to make it all stop?
Dan Collins: Rudy Giuliani Hammers Obama and Occupy Wall Street Movement
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This price differential offered the Patels an opportunity to profit through arbitrage.
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The appeals court said a trial judge in the case "permissibly found that the claimed tax deductions are for depreciation on property Wells Fargo never expected to own or operate, interest on debt that existed only on a balance sheet, and write-offs for the costs of transactions that amounted to nothing more than tax deduction arbitrage.
Court Says Wells Fargo Used Abusive Tax Shelters
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The exploitation of such price differentials by the purchase of a derivative on one market and the sale of the same derivative on the other market is known as arbitrage.
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Even more amazing was that out of those 261 investments, 59 of them were identified as arbitrage deals.
Warren Buffett and the Art of Stock Arbitrage
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While Laertes may have tried to return "in secret," the King's adept intelligence-gathering network picked up his whereabouts as fast as an arbitrager gone short.
Ken Adelman: Bard Blog: Confronting Confusion and Crises
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The banks have historically dominated this arbitrage market, mostly through their derivatives or proprietary trading desks.
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This is known as covered interest arbitrage.
International Finance: The markets and financial management of multinational business.
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This enables telecoms to arbitrage international cost differences to boost profitability.
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Globalized investment managers should move funds among markets in a volume sufficient to arbitrage real yields together.
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If this were not so, there would be interest arbitrage.
International Finance: The markets and financial management of multinational business.
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Taiwanese industrial investment owners in developing Southeast Asian countries are now using "information dissymmetry " to evade taxes and interest arbitrage.
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Second, there may be opportunities for tax arbitrage.
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This delayed cash flow will alter the net present value of an arbitrage transaction which involves buying shares.
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New providers will inevitably be forced to share in the miasma of regulations and taxes that provide its current arbitrage advantage.
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Every time there is a small change in the price of the Euro against the dollar, dealers perform arbitrage transactions.
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A wheat fungus in Ukraine, a class-action defeat, a movie that bombs, a CEO ouster, a bad quarter: whenever I think I have a bead on the future, the financial chattering class tells me that the institutional investors, private wealth managers and arbitrageurs have been yawning about that news for months.
Marty Kaplan: Who's Afraid of a Countdown Clock?
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The fixed income arbitrageur aims to profit from price anomalies between related interest rate securities.
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This arrangement gives institutional traders the opportunity to arbitrage the fund, but provides stale information to the general public.
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However, as the convertible bond and the stock can move independently, the arbitrageur can lose on both the bond and the stock, which means the position carries risk.
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arbitrageur" has amassed a $1.2 million exposure in troubled toll road company BrisConnections for just $1500 ahead of the final $1 instalment due on the units on January
AustralianIT.com.au | Top Stories
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By or selling an index fund and taking the opposite of that trade with specific stocks that are part of the index is an arbitrage strategy that requires lots of computer power, extremely fast executions, and a lot of capital.
Regulate Mutual Funds?, Arnold Kling | EconLog | Library of Economics and Liberty
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The production notes for "Arbitrage" don't acknowledge the use of the Jarecki family manse, but Dr. Jarecki says he was satisfied to have his name included in the film's credits along "with about 20 other people.
How 'Arbitrage' Located the Perfect Movie Set
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Such ‘discounts’ can attract the unwanted attention of opportunists and arbitrageurs who buy up the shares and then attempt to make a quick profit by forcing companies to buy them out for a higher price.
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‘Banks are an attempt to arbitrage away expected return differences between illiquid assets and low-return liquid assets,’ comments Diamond.
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Any monetary policy that would depart from neutral would give rise to the possibility of arbitrages and excessive returns for the banks.
Credit Free, Free Market Economy: The Plausible Solution to the Economic Crisis. Part I
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I take his point that a volatile market is much easier for a speculator with reliable information to manipulate (technically, an arbitrageur exploiting the opportunity for riskless profits).
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The latest bid dwarfs the up to $51 a share merger agreement that was rejected in September by Dollar Thrifty shareholders—many of whom were hedge funds and merger arbitrageurs hoping for Avis Budget Group Inc. to increase a competing bid it had made months before.
Hertz Raises Offer for Dollar
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With deals at an eight-year low, the fund's managers could not find enough arbitrage opportunities.
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SAFE said that not all the hot money in its estimates was for short-term arbitrage or represented illegal inflows, meaning money meant to evade controls or limits.
China Reports $75.5 Billion in 'Hot Money' Inflows
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There are two types of programme trading - index arbitrage and portfolio insurance.
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Knowing how to arbitrage cost imbalances in the global economy will help as well.
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Ivan Boesky, an arbitrager, was willing to pay, sometimes with suitcases of cash, for advanced knowledge of which firms were being purchased.
A Short (Sometimes Profitable) History of Private Equity
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In pure or riskless arbitrage transactions, the purchase and re-sale of the asset in question are conducted simultaneously, thus the arbitrageur does not risk any of their own funds.
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Too often they reflect the objectives of tax avoidance and regulatory arbitrage.
Times, Sunday Times
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It is entirely legitimate for companies to go to the grey market to exploit this arbitrage opportunity - so long as the transactions take place entirely within the EU.
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As the risk capital behind the arbitrageurs increased, the spreads declined and they had to reach into ever-smaller markets to generate the expected returns.
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By doing this, the arbitrageurs make a quick profit.
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However, as Bliss and Ronn suggest, the tax argument relies implicitly on the unlikely absence of a tax-exempt entity which can ignore the tax effects and arbitrage the pricing errors.
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Professionals who engage in arbitrage are known as arbitrageurs.
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During future-spot arbitrage analysis, two different types of index replication method including industry stratified sampling and ETF portfolio replication are investigated.
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Markets typically include a provision for resolving disagreements by returning the product or through arbitrage in other cases.
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Any value difference should generate arbitrage profits and the elimination of the divergence.
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Seems to me that we are in uncharted territory with this panic until the U.S. election is staged on November 4 and until the global community demonstrates that it is going to appoint sheriffs to patrol the global economy and stop the kind of jurisdictional arbitrage that led to the casino-ization of banking.
Diane Francis: Buffett's Wrong: Stay Out of Stocks
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Where are the arbitrageurs taking advantage of this free lunch (and maybe even eating a tastier lunch)?
Matthew Yglesias » Ketchup Economics
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As an investment activity it is driven by tax-levered debt, tax minimisation, capital gains arbitrage and profiteering.
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This result supports the hypothesis of Shleifer and Summers, according to which noise factors such as investor sentiment are not fully countered by arbitrageurs and so affect asset prices.
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The participation of arbitrageurs is what keeps it rare.
Anti-Finance Bias, Arnold Kling | EconLog | Library of Economics and Liberty
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Does a visit to your corner shop invoke an urge to arbitrage on say, the price of a pint of milk from the supermarkets?
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He goes on to reason that, ‘Interest rate sensitive derivatives and interest rate arbitrage plays are putting pressure on the continuity of the banking system.’
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This assumption overstates the impact of the bid-ask difference because arbitrageurs will likely face smaller bid-ask spreads, and some trades will occur within the range of the bid and ask prices.
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In pure or riskless arbitrage transactions, the purchase and re-sale of the asset in question are conducted simultaneously, thus the arbitrageur does not risk any of their own funds.
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An increase in Chinese interest rates will attract more hot money in search of arbitrage profits, and that would increase the domestic money supply.
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Therefore, not unexpectedly, transaction costs discourage this covered interest arbitrage.
International Finance: The markets and financial management of multinational business.
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Arbitrage tools: The term arbitrage is defined as a riskless transaction for the purposes of our due diligence.
Recently Uploaded Slideshows
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The decision was taken at a meeting of over 1000 day traders, arbitragers and jobbers here today.
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And we all know why: because the market is full of arbitrageurs who gobble up any free lunch the instant it hits the table and don't leave a scrap behind.
Social Security Privatization, Arnold Kling | EconLog | Library of Economics and Liberty
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The introduction of a trading lag of half a day reduced, but did not eliminate, these arbitrage profits.
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First, the more complicated the regulation, the more prone to arbitrages by insiders.
Nassim Nicholas Taleb: The Regulator Franchise, or the Alan Blinder Problem
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In the economic sector instantaneous global information pushes the trading and financial systems towards perfect information, reducing the opportunities for arbitrage.
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Subscription revenues assume the protection of intellectual property, which prohibits arbitrageurs from reprinting your newspaper and selling it at half-price because they don't have to pay your writers.
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One thing is certain: international differences in the scope and nature of regulation will remain, presenting opportunities for regulatory arbitrage.
Times, Sunday Times
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The realities of increasingly global trade has added to the options that management can employ as it arbitrages labor costs across every community, putting workers in Detroit in direct competition with their counterparts in Shenzhen.
Walmart Case: Supreme Court Aids The Powerful
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Part of Meriwether's legend is that he was one of the first to arbitrage bonds by selling one and buying the other in anticipation of their prices converging.
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Other tactics involve deep leveraging, programme trading, swaps, arbitrage and derivatives that retail investors find difficult to master.
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Only those who spot the change, see arbitrage opportunities, and shift capital to take advantage of information market failure.
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One arbitrager already has seen Mr. Greifeld three times.
At Nasdaq, a Pitch and Woo
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The trend shows that ‘if there's an arbitrage opportunity, it will get arbitraged away,’ says a pleased Gus Sauter, chief investment officer of Vanguard Group, which runs $350 billion in indexed mutual funds.
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The arbitrageur does this, of course, to make a profit but the effect of arbitrage is to equalize prices or interest rates between markets, provided there is completely free movement of capital.
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In pure or riskless arbitrage transactions, the purchase and re-sale of the asset in question are conducted simultaneously, thus the arbitrageur does not risk any of their own funds.
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Instead of acting as arbitrageurs like they were supposed to, they likely became day traders.
UBS case: How could one trader lose $2 billion?
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The differentials make it profitable for arbitrageurs to move in.
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It does not, therefore, take us as close to the interest parity line as the arbitrage we considered.
International Finance: The markets and financial management of multinational business.
