Posted by on April 13, 2017 8:15 am
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Categories: Bond Credit default swap Credit Default Swaps debt default Economy Finance Investors Service money Moody's Investors Service north korea Sovereign Risk Subprime mortgage crisis Swap Systemic risk United States housing bubble

Despite being rated five levels higher than Thailand by Moody’s Investors Service, the cost of insuring South Korea’s bonds against default is now more expensive for the first time in 7 years.

As Bloomberg reports, five-year credit-default swaps on Korean notes have surged in the past couple of days on concern a more aggressive U.S. foreign policy is increasing the risk of conflict with nuclear-armed North Korea.

Meanwhile, the cost of such contracts on Thai debt have more than halved over the past year as the nation’s current-account surplus swelled.

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