Comments on: The Citigroup Anomaly Lives

By: Citigroup & Berkshire Anomalies « Donald Marron

Citigroup & Berkshire Anomalies « Donald Marron — Mon, 06 Jul 2009 09:55:10 +0000

[...] previous posts (this is the most recent), I’ve pointed out that there are three ways you can purchase common shares of [...]

By: Berkshire and Citigroup Anomalies

Berkshire and Citigroup Anomalies — Mon, 06 Jul 2009 06:16:50 +0000

[...] previous posts (this is the most recent), I’ve pointed out that there are three ways you can purchase common shares of [...]

By: Progress on Auctioning TARP Warrants

Progress on Auctioning TARP Warrants — Fri, 26 Jun 2009 20:17:35 +0000

[...] TARP recipients except Citigroup. As research for my continuing series on the Citigroup anomaly (latest installment here), I am currently long a small amount of Citigroup preferred and short some call options on the [...]

By: Progress on Auctioning TARP Warrants « Donald Marron

Progress on Auctioning TARP Warrants « Donald Marron — Fri, 26 Jun 2009 19:45:57 +0000

By: The Subsidies in TARP

The Subsidies in TARP — Fri, 26 Jun 2009 18:30:53 +0000

By: The Subsidies in TARP « Donald Marron

The Subsidies in TARP « Donald Marron — Fri, 26 Jun 2009 18:08:23 +0000

By: The TARP Peace Sign

The TARP Peace Sign — Thu, 18 Jun 2009 21:06:28 +0000

By: The TARP Peace Sign « Donald Marron

The TARP Peace Sign « Donald Marron — Thu, 18 Jun 2009 20:34:29 +0000

By: A.N.Other

A.N.Other — Mon, 15 Jun 2009 11:36:35 +0000

do any of you arbers have any deal-break concerns ?

By: R Cohn

R Cohn — Fri, 12 Jun 2009 20:51:21 +0000

In previous years when interest rates were high the short seller would earn money on his short position depending on his or her agreement with the clearing broker.With short term interest rates so low this interest is very small.The exception to this idea occurrs when the stock is hard to borrow, like Citigroup.Either the clearing broker can not locate any stock to borrow or he charges a fee of up to %120 to borrow the stock.With the exception of very well connected accounts the short seller is at continual risk of buy-ins.
The Citigroup deal expires on July 24 with stock being issued about July30. Any arb who hedged the preferreds with June or July options has to roll to Aug or Sept or pray that the stock does not drop below 3.00.