Estimates of mispricing, such as deviations from no-arbitrage relations, strongly comove across five financial markets …. One common component---the arbitrage gap---explains the majority of variability in mispricing estimates for futures …, Treasury securities, foreign exchange, and options. Prominent equity anomalies also comove significantly with the arbitrage gap …

constraints disincentivize regulated institutions not only to engage in arbitrage activity themselves but also to provide leverage …

We investigate whether transaction costs, arbitrage risk, and short-sale constraints explain the abnormal returns of … transaction costs and concentrated in the most easily arbitraged stocks, those with low arbitrage risk and short-sale constraints …. Moreover, the managed-market strategy only provides superior performance when sentiment is high, consistent with prior theory …

---both across banks and currency areas. For most market participants, the no-arbitrage relation holds fairly well when implemented … using marginal funding costs and risk-free investment instruments. However, a few high-rated banks do enjoy CIP arbitrage … demand for dollar funding, by inducing opposite (arbitrage) flows from high-rated banks. Arbitrage trades are difficult to …

generated by the post-discovery long-short arbitrage trading. Consistent with this prediction, we find that hedge funds exploit …

Slow-moving capital cannot fully explain the 2005 and 2008 arbitrage crashes in theconvertible bond market. Faced with …

I study how arbitrage affects liquidity by analyzing several billion trades in the AmericanDepositary Receipt (ADR …. Impulse response functions estimated at 1-minute intervals indicate that a positive shock to arbitrage—simultaneous trades of … findings by exploiting institutional details that create exogenous variation in the impediments to arbitrage across days …

The capital structure arbitrage strategy exploits the discrepancies between the credit default swap and equity markets … traditional arbitrage trading during the financial crisis. Furthermore, the returns of the new strategies have lower correlation … with market returns than the standard capital structure arbitrage …

This paper develops useful theory of arbitrage and risk arbitrage. It describes a prize winning successful risk … arbitrage involving Nikkei put warrants trading on the Toronto and American stock exchanges. The paper describes the various … types of contracts and how the risk arbitrage was traded and executed …