Merger Arbs Stuck in Limbo See US Election as Deal Catalyst

The US election has much of Wall Street riveted. For merger-arbitrage traders, there’s a lot riding on the outcome, and a chance to revive their sagging fortunes.

Respondents in a recent Bloomberg News survey of these deal-focused traders said the outcome will be key for setting expectations on everything from deal flow to the antitrust climate and opportunities for trading on deals — all of which may turn in arbs’ favor if former President Donald Trump wins the presidency.

Simply getting past the election will remove uncertainty that has weighed on new deal announcements, setting the stage for a pickup ...