BAC/CFC deal

Discussion in 'Trading' started by Cutten, Jan 11, 2008.

  1. Cutten


    Any experienced risk arbitrageurs here? What do you make of this deal and the potential for profit on it.
  2. 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.
  3. 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.