Versor's Gurnani Sees Strength in Merger Arb Strategy

The video discusses the current favorable conditions for merger arbitrage strategies, highlighting strong deal flow and narrow spreads. It also examines the high cash reserves in private equity and strategic buyers, suggesting continued acquisition activity. The potential impact of tax changes on private equity is considered, though deemed too early to predict significant effects.

What factors contribute to a strong environment for the merger arbitrage strategy?

What is the significance of spreads in the context of merger arbitrage?

How do changes in interest rates affect the merger arbitrage strategy?

What concerns are raised regarding the cash pile in private equity funds?

How has the deal flow changed in the second half of last year compared to the first quarter of this year?