The Complete Arbitrage
Deskbook
"Through the
examination of actual examples and practical situations, the goal is to achieve an
integrated view of arbitrage opportunities, precisely as a trader would see them..."
When used with skill and
caution, equity arbitrage despite relentlessly negative press and widespread popular
misconceptions is a very low-risk strategy. It only becomes perilous in the hands of the
inexperienced or overconfident. The Complete Arbitrage Deskbook provides anyone from
capital market professionals to private traders to non professionals with a serious
interest in understanding Wall Street and its intricacies -with a safe, solid foundation
in the essential knowledge of equity arbitrage trading.
Before you can successfully
employ equity arbitrage in the marketplace, you must first develop a ..complete
understanding of its mathematics and practice. The Complete Arbitrage Deskbook covers
every aspect mechanics, opportunities, risks, and valuation principles to help you move
forward with knowledge and confidence. In-depth descriptions and demonstrations of each
pertinent financial instrument stocks, futures and other derivatives, money market
instruments including interest rate swaps, and stock indices show you what you need to
know to manage these and where to focus your attention in terms of risk management.
Detailed sections provide hands-on information about:
Convergence continuums
Cross-exchange listing
Closed-end and convertible
funds
Holding companies
Oscillators
Mark-to-market versus
theoretical valuation
Valuation and random
variables
Risk management principles
and tools, including value-at-risk
Index arbitrage and absolute
convergence
Risk arbitrage and explicit
convergence
Pair trading and technical
trading
Fallacies about what
arbitrage is and is not are common among financial professionals. Concise yet
comprehensive, The Complete Arbitrage Deskbook sidesteps fallacy to present fact. It is
the only comprehensive overview of the opportunities and perils in the arbitrage markets
and today's only complete overview and practical analysis of modern equity arbitrage.
About the Author
Stephane Reverre works for
Leading Market Technologies, specializing in analytical tools for ' institutional
investors. He is the former head of index arbitrage and quantitative trading for the Tokyo
and later New York offices of Societe Generate, one of the largest French banks and a
leader in the field of equity derivative trading. A graduate of Ecole Central in Paris as
well as the Harvard Business School MBA program, Reverre has provided consulting services
for software and :| trading companies and has published numerous '| articles on equity
arbitrage in specialized magazines and publications.
508 pages