Capital structure arbitrageurs focus on individual issuers. Arbitrage is the simultaneous purchase and sale of the same asset in different markets in order to profit from a difference in its price.The California Debt and Investment Advisory Commission (CDIAC) provides information, education, and technical assistance on debt issuance and public. Capital structure arbitrage is a sophisticated strategy requiring a deep understanding of credit, equity markets, and structural risk models. This means interest on these bonds are excluded from gross income for federal tax purposes.