Oksana Koneva

Andy Constan: Deal spread implies 7.2% potential return versus 4.5% cash

Andy Constan: Deal spread implies 7.2% potential return versus 4.5% cash
Deal spread shows 7.2% return over cash

A deal spread calculation suggests a potential 7.2% return for a transaction that may take six months to a year to close, compared to a 4.5% return in cash.

Andy Constan, founder and strategist at Damped Spring Macro, highlights the distinction between fundamental market sentiment toward the deal and its likelihood of being completed.

Constan previously highlighted the impact of unfavorable deals on equity performance, noting ONDS stock fell 55 percent to a year-to-date low after a shareholder-unfriendly agreement in a recent report. He has also observed that a net long range of 48-56% for long/short equity funds results in only a modest 1.2% return difference, as discussed in an earlier analysis. His commentary often separates fundamental deal sentiment from potential investor returns.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.