The Robinson Alternative Yield Pre-Merger SPAC ETF (ticker: SPAX) returned 2.47% for the first quarter of 2023 on a price basis and 3.69% for the trailing 12-months; it returned 1.48% on a net asset value basis for the quarter and 3.92% the past 12-months.
The conservative expected return of the pre-merger SPAC market over the next 12 months is 6%, regardless of whether the landing is soft or hard
SPAC Arbitrage provides exposure to pre-merger SPACs given their attractive asymmetric risk adjusted returns, downside risk mitigation, equity-like capital appreciation potential, and uncorrelated nature to stocks and bonds.
As the bond market prepares for the start of a Fed rate hike cycle, we look at the previous rate hike cycles in which the Fed moved at least 1.75%. There have been 8 over the past 50 yrs.
SPACs are companies formed strictly to raise capital through an IPO for the purpose of acquiring one or more existing private companies.