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What is meant by “DJ Arbitrage Spreads On Pending Mergers & Acquisitions”?

April 26, 2017acquisitions Arbitrage dj meant mergers spreads

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What is meant by “DJ Arbitrage Spreads On Pending Mergers & Acquisitions”?

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To build on Kevin’s answer, the time value of the spread can be used to guage the relative certainty or lack of certainty the market sees in the merger/acquisition being consumated. A large spread means there is still risk. A narrow spread usually means it’s a safe bet.