Shin Kong (2888 TT)/Taishin (2887 TT) - Short Timer, FX Risk, Index Flows - Time To Buy Vs Peers

869 Views16 Jun 2025 07:36

Shin Kong and Taishin have suffered vs Other FHCs as stronger TWD has caused mark-to-market bond losses. But peer buying for index reverses as Taishin sees big index buying. There's a trade here.

What is covered in the Full Insight:

Merger Overview
Risk Arbitrage Opportunities
Index Trades and Dynamics
FX and Borrowing Implications
Trading Strategies and Conclusions

Boomeranged on Wed, 25 Jun 2025 05:16

One month to go for the Shin Kong Taishin Merger Arb and the spread is still elevated at 5.5%. There is some tightness on Taishin borrow but more stock is available now and there is a fair bit of room still as the short balance has gotten shorter since a few days prior to the TDIV increase (while SK/Taishin vs Peers has gone nowhere despite big Taishin buying). The risk arb should be good risk.

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