{"id":76783,"date":"2019-01-24T06:49:43","date_gmt":"2019-01-24T05:49:43","guid":{"rendered":"http:\/\/beta.next-finance.net\/strategie\/why-merger-arbitrage-should-continue-to-do-well\/"},"modified":"2020-01-01T22:44:26","modified_gmt":"2020-01-01T21:44:26","slug":"why-merger-arbitrage-should-continue-to-do-well","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/strategie\/why-merger-arbitrage-should-continue-to-do-well\/","title":{"rendered":"Why Merger Arbitrage should continue to do well"},"content":{"rendered":"

The market rebound since end of December is in stark contrast with the adverse conditions that prevailed in December
\nfor risk assets. In our view, the main reasons behind the turnaround are related to: i) a softer monetary policy
\nstance from the Fed, which is likely to be confirmed at the January 29-30th FOMC meeting, ii) easing trade
\ntensions between the U.S. and China, and iii) the announcement of economic stimulus measures in the latter.
\nThis suggests that the market recovery can continue in the short term. However, in our view, caution prevails in
\nthe medium-term, as recession risks in the U.S. and Europe have risen and Brexit uncertainty remains high.<\/p>\n

To navigate such unstable conditions, there is a limited range of \u201call weather\u201d strategies. Merger Arbitrage and
\nFixed Income Arbitrage (including L\/S Credit) have demonstrated their ability to navigate such a difficult year
\nlike in 2018, when most asset classes delivered negative returns. We focus on Merger Arbitrage and why we
\nthink it could continue to do well in 2019, below are three main reasons: <\/p>\n