In today’s briefing:
- What Is NPS Buying & Selling?
- Korea Loan Guarantees: A Pair Trade Between Shinsegae & Hyundai Dept Store
What Is NPS Buying & Selling?
- In this insight, we discuss a list of 60 stocks in Korea where NPS recently added or reduced 1% or more stake (27 adds and 33 reduce).
- Among the stocks NPS increased its stake, many of them are clear beneficiaries of the end of zero COVID policies in China including Hotel Shilla, Amorepacific Corp, and GKL.
- Among the top market cap stocks where the NPS decreased its stake by 1% or more, they include Lg Innotek, Hyundai E&C, Hyundai Mipo, and Posco International.
Korea Loan Guarantees: A Pair Trade Between Shinsegae & Hyundai Dept Store
- Amid sharply rising interest rates and greater economic uncertainty, the subject of loan guarantees to affiliates among Korean companies has become more important.
- In this insight, we discuss a pair trade between Shinsegae (long) and Hyundai Dept Store Co (short).
- Four major reasons why we prefer Shinsegae vs Hyundai Dept Store include negative impact from equity spin-off, increasing leverage (including loan guarantees), valuations, and economies of scale.
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