In today’s briefing:
- Unique Rebalancing Pattern & Unique Trading Angle of the KODEX Samsung Group ETF
- K Bank IPO: The Bear Case
Unique Rebalancing Pattern & Unique Trading Angle of the KODEX Samsung Group ETF
- This KODEX Samsung Group ETF sees 30% AUM outflows pre-rebalancing, with the same chunk flowing back in after, especially noticeable during December.
- Over three years, local brokers sold stock baskets before rebalancing, causing notable price impacts. During this time, Samsung affiliates in the ETF delivered 3-4% returns.
- ChatGPT said:ChatGPTThis isn’t typical NAV arbitrage; it’s likely an unhedged play. Nonetheless, given the consistent price impact and accessible stock futures, it’s worth considering.
K Bank IPO: The Bear Case
- K Bank (279570 KS) is a Korean internet bank. It has launched an IPO to raise up to US$734 million.
- In K Bank IPO: The Bull Case, we highlighted the key elements of the bull case. In this note, we outline the bear case.
- The bear case rests on rising competitive intensity, the smallest deposit base among Internet banks, below-peer loan book growth, and a high-risk crypto play due to the Dunamu partnership.
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