Think quickly! what's the financial play following the death of Kin Jong Il

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

Can't think of other plays

What can you come up with monkeys? What is your financial play based on these news?


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Comments (15)

Dec 19, 2011 - 11:10am
short hennessy


Long ...everything else?

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Dec 21, 2011 - 1:14am

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