U.S. of AA+: Markets A.M. With Spencer Jakab

U.S. of AA+: Markets A.M. With Spencer Jakab

It’s each investor’s fantasy: You hop into your DeLorean with a flux capacitor and peruse the adjacent day’s newspaper. Imagine speechmaking that 1 of the world’s starring standing agencies would downgrade trillions of dollars successful bonds astir everyone owns. You’d merchantability yours, naturally.

But successful April 2011, erstwhile Standard & Poor’s issued a antagonistic outlook connected Uncle Sam’s credit, benchmark Treasury enactment prices began to rise, and not by a little. In August of the aforesaid year, when it really downgraded the U.S. to a specified AA+, stocks plunged but Treasury indebtedness continued to rally. Between April and aboriginal September the notes’ yield, which moves successful the other absorption of prices, fell from 3.4% to little than 2%.