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Hedge funds score big win on obscure trade as North Korea nuclear risk is raised
https://www.cnbc.com/2017/08/09/hedge-funds-score-big-win-on-trade-as-north-korea-nuclear-risk-is-raised.htmlAn obscure safety trade against fallout from a North Korean nuclear attack leaped Wednesday to its highest in more than a year.
Hedge funds bought South Korea's five-year credit default swap, sending the cost of protection against the country's inability to pay back loans up 8.63 percent to 62.74, its highest since June 2016.
As of August 2016, S&P had an AA credit rating and a stable outlook for South Korea.
"We have seen a steady increase throughout the year in US-North Korean tensions — most of which have been ignored by markets," Callum Henderson, managing director, global markets Asia Pacific, at consulting firm Eurasia Group, told CNBC in an email.
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