Daily BriefsSouth Korea

Daily Brief South Korea: SK Telecom and more

In today’s briefing:

  • 3Q Dividend Estimates of Those with SSF for Cash & Carry Arb in Korea

3Q Dividend Estimates of Those with SSF for Cash & Carry Arb in Korea

By Sanghyun Park

  • Juice for cash & carry arbitrage doesn’t seem like much. Several names in contango, but the basis widening isn’t at a sufficiently arb-tradable level.
  • Reverse cash & carry isn’t all that attractive either, but it certainly does offer more juice, even with borrow fees. Ssangyong C&E, SKT, Shinhan, and KB deserve our attention.
  • A bit uncertain is whether the pattern of “LONG Spot until ex-dividend and Conversion to Short” through cash & carry will repeat itself this time.

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