Hedge funds are snapping up insurance against a South Korean default as the nuclear threat from North Korea appears to grow. "The speed of the move in the cost of protection is one of the sharpest we've witnessed in years," said Larry McDonald of "The Bear Traps Report" newsletter. As measured by South Korea's five-year-default swap, the cost of protection against the country's inability to pay back loans leaped Tuesday to its highest level since July. As of last August, S&P had an AA credit rating and a stable outlook for South Korea. North Korean state media warned...