Tough talk has lifted cost of insuring South Korean debt

Five big themes likely to dominate thinking of investors and traders in the coming week

1. Jaw-jaw, sell-sell

An unnerving war of words between Washington and Pyongyang has pushed the cost of insuring South Korean debt against default to its highest in 1-1/2 years and the expected volatility of the Korean won is creeping higher.

Ekt 1aGauges of market risk have been rising but are far off their peaks as the expectation still is that diplomacy would prevail and prevent a nuclear conflict.

But investors are increasingly jittery and some are wondering what other threats to the benign environment in markets may be lurking below the…

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button