| The fixed income arbitrageur aims to profit from price anomalies between related interest rate securities. |
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| The speculator is betting on changes in the price, while the arbitrageur is betting on changes in the spread. |
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| The arbitrageur will sell the over priced bond to the dealer at the bid price, and buy the under priced bond from the dealer at the ask price. |
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| However, as the convertible bond and the stock can move independently, the arbitrageur can lose on both the bond and the stock, which means the position carries risk. |
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| The King of financial arbitrage capitalism is the financial arbitrageur. |
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| The former treasury secretary, who also used to be an arbitrageur, embodies a policy of paying attention to what markets think and how they react. |
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| The risk is that the merger or takeover attempt will not succeed, in which case the stock price usually falls back down again, thus incurring large losses for the arbitrageur. |
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| It is true that an arbitrageur who had bought three-months' sterling could resell the sterling before the three months had elapsed, but if he did so he might have to accept a loss. |
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