Cost to insure AI debt reaches record high amid Asian semiconductor tumble

Key points: KOSPI’s back-to-back circuit breakers wiped $620 billion in two days, worsened by leveraged retail betsHyperscaler CDS jumped from 115 basis points to 162bps in recent months, implying ~12% five-year default odds, with Oracle’s OpenAI exposure the biggest red flagHynix posted a record 60.54 trillion Korean won profit but still missed the 64 trillion won estimateKorea sees two-day, $620 billion wipeoutKorean equities saw the second day of a historic sell-off on Wednesday with market-wide circuit breakers again halting trading. Combined with Tuesday’s drop, the KOSPI has now shed nearly 17%, wiping out $620 billion in market capitalization. This has prompted the government to convene an emergency meeting of its financial authorities. The initial trigger for the sell-off was SK Hynix’s Q2 earnings miss. The stock was down another 4% today, extending Tuesday’s 15% drop. Taken together with Samsung Electronics, the company makes up nearly half of the Korean index. Related: Trade.xyz to cover SK Hynix perp liquidation losses tied to price anomalyCurrent KOSPI sell-off on a high timeframe. Source: Kobeissiletter, Tradingview Among a generation of Koreans priced out of housing ...