Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

Korea Zinc: Latest Stockholder Record for Proration Risk

MBK's Korea Zinc & Young Poong Precision Tender Results Officially Out

Let’s Get Real About the Odds of MBK Launching a New Tender for YPP

MBK Rules Out Further Tender Price Hike for Korea Zinc, Game Plans Shift

Korea Zinc: Breaking Down the Cancel Risk with Specific Legal Provisions for Both Camps

MBK Raised Korea Zinc's Tender Price to ₩830K and Dropped the Hard Floor, Keeping the Upper Hand

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>Another play is spread trading Korea Zinc single-stock futures: go long on the front-month and short on the farther-out contract to profit from price convergence.</li>
<li>The key is when longer-dated futures' volume will rise and if the basis difference with front-month futures will create arbitrage opportunities. November's volume seems more for hedging than arbitrage.</li>
<li>MBK is likely to launch a second tender offer, potentially extending the spread trading timeline and giving us more chances to hit sweet spots.</li>
</ul>


Another play is spread trading Korea Zinc single-stock futures: go long on the front-month and short on the farther-out contract to profit from price convergence.
The key is when longer-dated futures' volume will rise and if the basis difference with front-month futures will create arbitrage opportunities. November's volume seems more for hedging than arbitrage.
MBK is likely to launch a second tender offer, potentially extending the spread trading timeline and giving us more chances to hit sweet spots.


Another Play to Consider: Spread Trading Korea Zinc Single-Stock Futures