K200 ETFs' Swap Trading on Meritz & Fresh Buy-In JB Financial on Jan 27

This post details the KOSPI 200 corporate actions on the Meritz merger on January 27 and discusses trading setups to consider for two Meritz companies and JB Financial.
- by Sanghyun Park on Jb Financial Group in Event-Driven
Key points:
1. KOSPI 200 ETFs will have to sell Meritz FIRE and buy Meritz FINANCIAL at the close on January 27. JB Financial, the top reserved issue, will replace FIRE.
2. We should consider a Long Short for two Meritz companies just before the 27th. As a follow-up setup, we should aim for a potential widening of the swap arb spread.
3. As for the Long JB Financial, I would set the entry timing one week towards the implementation at the latest and look into Kodex Banks ETF (091170) for a hedge.
Before it's here it's on Smartkarma: skr.ma/TZYJd
More from Sanghyun Park: skr.ma/UHD63
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