arbitrager

As a would-be theorist, however, he was rarely if ever a true originator, but instead an arbitrager. In several of his books, he carried ideas from economics (and sometimes other disciplines), where they were more or less familiar and hence no longer at the cutting edge of research, to history, where they were relatively unfamiliar and hence offered the potential for adding substantial value to research endeavors at the existing margin.

For example, if our arbitrager sees that a three-month Treasury note yield is "too low" compared with the yield on a 10-year Treasury bond, the trader will keep buying 10-year bonds (lowering the yield on the bond) and selling three-month notes (raising the yield on the note) until it is no longer profitable to do this trade.

The problem here is that he was an arbitrager and a derivatives trader whose expertise in the market was such that none of his superiors had a clue what he was doing.

(66) For instance, an arbitrager might take advantage of price differentials between markets by buying a stock for a lower price in one market and selling it for the higher price in the other.

Pulling my wallet from my pocket, I slapped down two twenties, motioned to a smiling Trudi my thanks for her excellent service, and accelerated to as fast a broken-field dash around the assembled locals as could be expected of a forty-two year-old arbitrager who routinely grew short of breath hailing a cab.

For instance, the exploitation of arbitrage opportunities may require the presence of a professional arbitrager or the provision of specific information.

He continues, "We are if you will and arbitrager who deals purely in the equities of real estate; REITS' market, IPD swap derivatives and we are also now plugging

(14) In this sense, the neo-Austrian version of the entrepreneur is an arbitrager; a person embodying foresight, knowledge and willingness to act in situations of widespread ignorance of the disequilibria that exist (Canterbery 1995, p.

The buyer in this scenario is a type of risk arbitrager who offers the seller the difference between what the risk costs the blogger and what it costs the specialist, who is in a better position to diversify risk.

Unless the arbitrager has an infinite horizon and is never forced to liquidate, an arbitrager who buys a closed-end fund at a discount to net asset value while selling short its underlying portfolio (even if feasible and costless) will likely not have an effective arbitrage opportunity.