High frequency arbitrage opportunities sometimes arise when the price of one asset follows, with a lag, changes in the … value of another related asset due to information arrival. These opportunities are toxic because they expose liquidity … suppliers to the risk of being picked off by arbitrageurs. Hence, more frequent toxic arbitrage opportunities and a faster …

We develop a model of financially constrained arbitrage, and use it to study the dynamics of arbitrage capital …, liquidity, and asset prices. Arbitrageurs exploit price discrepancies between assets traded in segmented markets, and in doing … so provide liquidity to investors. A collateral constraint limits their positions as a function of capital. We show that …

The paper studies the role of risk arbitrage in takeover contests. We show that arbitrageurs have an incentive to … between trading volume, takeover premium, bidder's toehold, liquidity of the shares and the probability that the takeover will …

traders with pure hedging motives in that market to withdraw, so reducing liquidity in the old market. The general point …

making investments today and waiting for arbitrage opportunities in future is the combination of occasional fire sales and … fire sales in other types that are fundamentally unrelated, provided arbitrage activity in these investments is sourced …

importance of regulatory arbitrage as a driver of cross-border bank flows since the global financial crisis. However, in the euro … area, arbitrage in capital stringency was linked to lower cross-border lending since the crisis. …