(Opalesque) Merger Arbitrage again demonstrated its ability to deliver positive returns in adverse conditions, Lyxor said in its weekly brief. “This is a strategy on which we have maintained an Overweight stance over the recent quarters despite the recent underperformance,” it said in a report. M&A volumes remained strong in the U.S. in April and rebounded in Europe. Deal spreads are tight, and this is a headwind. However, the strategy is so defensive and uncorrelated with broader market movements that we strongly reaffirm the Overweight stance.