As sick as it sounds, I've been waiting for an event like this to blog.
This announcement seems unprecendented and its big enough to be able to make a profitable financial play.
Here are my thoughts:
While this might bring joy and relief tonight, tomorrow morning the feeling is going to turn into uncertainty. We all know uncertainty brings volatility so what can we do?
I predict the following:
Shock depreciation of the Korean Won against the USD Depreciation of the Yen against the USD Selloff of Korean sov and corps, leading to a rise in korean rates.
-Widening of the long-short spread of Korean won denominated bonds
So if my predictions pan out, would this be the play?
Short won/long usd Borrow in Korea, lend in USA/Canada/Swiss