Itpm - How to Optimally Trade a Rights Issue (with Excel TERP Calculation)
Video length: 18 Minutes
Rights Issues are an extremely common way in which companies in the Equities Markets raise Money from investors. Current shareholders are diluted and more often than not Rights Issues provide Major inflection points in Stocks as turning points for their businesses Fundamentally. Therefore, Rights Issues tend to provide major opportunities for Traders both on the Long and Short side. In this Video, Chris Cathey shows you how a Rights Issue works, the different reasons why Rights Issues occur, how to read Rights Issue prospectuses correctly and how to distinguish between a Rights Issue that goes well and a Rights Issue that goes badly. This is a very important lesson for Retail Traders that can get caught out by a Rights Issue being announced or for Retail Traders to generate both Long and Short ideas from Rights Issue announcements. Chris Quill then shows you in this Video how to calculate Rights Issues properly using publicly available data and an Excel spreadsheet in a simple and easy to understand way, so that everyone can take advantage of these trades.
Viewers of this video also have access to the spreadsheet and it is downloadable for viewers to keep forever.
Dr Christopher Cathey enjoyed a successful 15-year career as a Professional Trader. After completing a First Class degree in Natural Sciences and obtaining his PhD in Chemistry from Fitzwilliam College Cambridge, Chris was hired by Goldman Sachs. Chris worked for Goldman Sachs as an Equities Trader in Frankfurt, New York and London between 1993 and 2006. He then worked as a proprietary trader at Merrill Lynch Strategic Investments Group between 2006 and 2008, before retiring. Chris has interviewed hundreds of Graduates in his career and knows exactly what is required to ace your interviews at both Investment Banks and Hedge Funds.
After being part of the team at Ruffer Asset Management in London that generated the number one Japanese Equity Fund Returns Globally, Christopher Quill joined the Institute as head of Statistics and Research. Known by his colleagues and Traders at the Institute as “Mr Excel,” Chris’ expertise lies in managing Big Data and building then breaking down complex Statistical Models and Spreadsheets that simplify processes so that anyone can understand and use his resources.