A few months ago, I wrote a series of posts about anomalies in the pricing of Citigroup common and preferred stock (see here for the final installment). At the time, Citi’s common stock traded at prices that appeared to be way too high relative to the preferred stock (which has since converted into common). Limits [...]
Posts Tagged ‘Arbitrage’
The GM (er, Motors Liquidation) Anomaly
Posted in Finance, tagged Arbitrage, Finance, GM on October 31, 2009 | 4 Comments »
Citigroup & Efficient Markets
Posted in Finance, tagged Arbitrage, Banks, Citigroup, Finance, Stock Market, TARP on July 21, 2009 | 8 Comments »
The Citigroup pricing anomaly may be in its final days (earlier posts here and here). Investors must submit their offers to exchange preferred shares for common shares by this Friday (which may require contacting your broker several days earlier). The common shares will then be delivered to investors on July 30. The pricing gap between the [...]
The Citigroup Repo
Posted in Finance, tagged Arbitrage, Banks, Citigroup, Finance, Stock Market, TARP on July 10, 2009 | 6 Comments »
As I’ve noted in a series of posts (here’s the most recent), there’s an anomaly in the pricing of Citigroup securities. Several issues of Citi’s preferred stock are scheduled to convert into common by the end of the month. Yet the common stock has been trading at a significant premium to the preferred in recent [...]
Citigroup & Berkshire Anomalies
Posted in Finance, tagged Arbitrage, Banks, Berkshire Hathaway, Citigroup, Finance, Stock Market, TARP on July 6, 2009 | 9 Comments »
Summary: Both Citigroup and Berkshire Hathaway continue to violate the law of one price. Citigroup In previous posts (this is the most recent), I’ve pointed out that there are three ways you can purchase common shares of Citigroup: Simple: Buy shares of common stock. Preferred: Buy shares of preferred stock that will convert into common. [...]
Linkfest
Posted in Auctions, Budget, Finance, Health, Regulation, tagged Antitrust, Arbitrage, Auction, Budget, Citigroup, Google, Health, Regulation, Search, Stock Market, TARP, Venture Capital, Warrants on June 11, 2009 | 1 Comment »
Some good items elaborating on topics I’ve discussed in the past week: Paul Kedrosky says that the U.S. Venture Capital industry needs to shrink – by 50%. [my latest post on this] SubsidyScope presents some cool visualizations of the TARP money and other bailouts. (ht: Marcus Peacock in the comments) [latest post] Barrons analyzes the [...]
The Citigroup Anomaly Lives
Posted in Finance, tagged Arbitrage, Banks, Citigroup, Finance, Stock Market, TARP on June 9, 2009 | 25 Comments »
Summary: Citigroup securities are still violating the law of one price. Later this week, Citigroup will finally launch its offer to convert some preferred stock into common stock. That exchange has big implications for the government, which purchased preferred shares through the TARP program; after the exchange, the government will become Citi’s largest shareholder. The [...]
The Berkshire Anomaly
Posted in Finance, tagged Arbitrage, Berkshire Hathaway, Finance, Stock Market on May 30, 2009 | 3 Comments »
Readers seemed to enjoy my post about anomalies in the pricing of Citigroup securities, so I thought it would be fun to look at another anomaly, this time in the shares of Berkshire Hathaway, Warren Buffett’s famous company. This pricing anomaly is small compared to the Citigroup one. But it does raises some interesting questions [...]
The Citigroup Anomaly
Posted in Finance, tagged Arbitrage, Banks, Citigroup, Finance, Stock Market, TARP on May 26, 2009 | 11 Comments »
Something is amiss in the market for Citigroup securities: prices are out-of-whack with standard arbitrage relationships. This suggests that (a) recent financial turmoil — or, perhaps, the policy responses to it — have undermined market efficiency and (b) some investors are over-paying.
Most Requested
Twitter
Get Updates by Email
Get Updates by RSS
Share or Bookmark
-
Recent Posts
- Financial Answers Made Simple
- The 102% Tax Rate and Other Perils Measuring Tax Rates
- When Should You Stop Looking for a Possibly-Extinct Species?
- A Sunday Numeracy Quiz
- The U.S. Economy is Uncertain, Fragile, and … Growing
- Do Federal Workers Get Paid More Than Private Ones?
- Online Education and Self-Driving Cars
- How Much Does the United States Really Owe?
- Can One Professor Teach 500,000 Students At Once?
- Capital Gains Taxes Are Going Up
- The Natural Gas Glut is Reshaping Electricity Markets
- Oil and Natural Gas Prices Move Even Further Apart
- Getting Better But a Long Way to Go
- How Do Consumers Spend Engine Efficiency Advances? On Bigger, Faster Cars
- Lose an Election, Gain a Think Tank
30-Second Economics
Tags
Categories
Archives
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
Translate this blog into
