S&P Merger Arbitrage Index Launched By S&P Dow Jones Indices
NEW YORK, Dec. 12, 2012 /PRNewswire/ -- S&P Dow Jones Indices, the world's largest provider of financial market indices, announced today the launch of the S&P Merger Arbitrage Index, which seeks to model a risk arbitrage strategy that exploits commonly observed price changes associated with a global selection of publicly announced mergers, acquisitions or other corporate reorganizations. The Index has been licensed to ProShares to serve as the basis for an upcoming ProShares ETF.
"The S&P Merger Arbitrage Index aims to address the market's continued interest in a merger arbitrage strategy says Vinit Srivastava, director of strategy indices at S&P Dow Jones Indices. "This offering expands our family of long-only merger arbitrage indices and further builds our capabilities in the alternative indexing space."
The S&P Merger Arbitrage Index (the "Index") is comprised of stocks that are active in pending merger deals. At any given time, a maximum of 40 companies that are currently targets in merger deals are represented in the Index in long positions and a maximum of 40 companies that are currently acquirers for the same stock merger deals are represented in short positions.
The S&P Merger Arbitrage Index includes two sub-indices which represent the long and the short components of the headline Index separately –
- S&P Merger Arbitrage - Long Index
- S&P Merger Arbitrage - Short Index
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