Any experienced risk arbitrageurs here? What do you make of this deal and the potential for profit on it.
It is pretty dangerous to cook someone's book at current time; election year; and new government is coming; These kind things only works for government; if you want to try these on your book; need to buy some insurances. Reading Warren Buffett's book helps a lot. Citis' deal has some where around 11% on its convertible bonds; it is pretty sweet for these foreign investors.
its a dumb move but BAC had no choice since they bought a huge stake at 19 only to see the stock fall to 5 bucks. they are essentially averaging down. why would a bank buy someone like CFC unless they had too? CFC were heading towards bankruptcy.thats a fact.