When a company agrees to buy another, the target's stock usually trades a little below the agreed deal price until the deal legally closes — that gap is the arbitrage spread, the return you capture for carrying deal-completion risk. This desk parses the real consideration straight out of each deal's SEC S-4 filing, prices the spread against the live market, and annualizes it. Tight Carry = small, low-risk spreads (steady annualized yield). Wide Spread = the market is pricing real deal risk (higher reward, watch regulators). Bump Watch = target trading above terms, meaning the market expects a sweetened bid.