What is TERP in this context?

TERP (Theoretical Ex-Rights Price) is the calculated market value of a stock after a rights offering has taken place, factoring in the new shares and the subscription price.

How does this skill help with arbitrage?

It compares the market price of nil-paid rights to their theoretical value, helping identify mispricing relative to the subscription price and current share price.

Does it account for transaction costs?

The workflow includes manual and automated checks for borrow costs, execution slippage, commissions, and foreign exchange fees to ensure accurate net P&L modeling.

Can it model shareholder dilution?

Yes, it calculates post-offering ownership percentages and quantifies wealth transfers between participating and non-participating shareholders.

Rights Offering Arbitrage Modeling

Name: Rights Offering Arbitrage Modeling
Author: lev-os

bylev-os

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Analytics & Monitoring

Calculates Theoretical Ex-Rights Price (TERP) and models arbitrage opportunities within corporate rights offerings.

This skill provides specialized tools for analyzing complex rights offering dynamics, enabling users to evaluate the fair value impact of new share issuances. It facilitates the calculation of Theoretical Ex-Rights Price (TERP), nil-paid rights value, and subscription premiums, while modeling various arbitrage P&L scenarios. It is particularly useful for event-driven investors, activist strategists, and financial analysts assessing dilution impacts and market mispricings during capital structure shifts and recapitalizations.

Key Features

01Sensitivity testing for market price and take-up rates

022 GitHub stars

03Automated TERP and nil-paid value calculations

04Execution risk mapping and timeline tracking

05Comprehensive arbitrage P&L scenario modeling

06Shareholder dilution and wealth transfer analysis

Use Cases

01Evaluating fair value impact after a corporate rights offering announcement

02Analyzing activist investor strategies in defensive capital situations

03Identifying mispriced nil-paid rights for hedge fund arbitrage opportunities

What are Skills?·How to Install

Install with 🐟 Skill.Fish

npx skillfish add lev-os/agents modeling-rights-offering-arbitrage

For use in Claude.ai and ChatGPT

Key Features

01Sensitivity testing for market price and take-up rates

022 GitHub stars

03Automated TERP and nil-paid value calculations

04Execution risk mapping and timeline tracking

05Comprehensive arbitrage P&L scenario modeling

06Shareholder dilution and wealth transfer analysis

Use Cases

01Evaluating fair value impact after a corporate rights offering announcement

02Analyzing activist investor strategies in defensive capital situations

03Identifying mispriced nil-paid rights for hedge fund arbitrage opportunities

What are Skills?·How to Install

Install with 🐟 Skill.Fish

npx skillfish add lev-os/agents modeling-rights-offering-arbitrage

For use in Claude.ai and ChatGPT