Has this arbitrage opportunity already passed? SPACs were all the rage not so long ago, as one after another sold shares to the public. But then came the credit crunch and a dearth of investment opportunities for them and the activity slowed.

But hedge funds soon discovered a new arbitrage opportunity, reports TheStreet.com. As more SPACs found it difficult to find companies to buy, their share prices sagged, which sent their yields soaring. These guys apparently trade a bit like closed-end funds. But lots of hedge funds soon flooded in, and that has taken yields down a bit. That's arbitrage for you. It was fun while it lasted. 

For more:
- here's the article from TheStreet.com

Related Articles:
The decline of merger arbitrage
Hedge fund woes spell opportunity for some
How bad is it for hedge funds