A pattern of prescient and potentially very lucrative trading has taken shape on a once-obscure corner of Wall Street—and U.S. investigators are suspicious, Bloomberg reports.
The setting is the world of SPACs. The instrument is a stock warrant, which gives holders the right to buy shares at a specified price in the future. Before many SPACs announced mergers, there was a curious spike in warrant trading. Bloomberg’s research into 300 blank-check firms shows there’s been a sharp increase in lucrative trades before about 1 in every 4 SPAC deals. Read more.
