Details

Autor(en) / Beteiligte

• Tanzer, Andrew

Titel

Downgrade in U.S. Debt Rating Could Have Grim Consequences

Ist Teil von

• Kiplinger's personal finance, 2011-07, Vol.65 (7), p.1

Ort / Verlag

Washington: Kiplinger Washington Editors

Erscheinungsjahr

2011

Quelle

Business Source Ultimate【Trial: -2024/12/31】【Remote access available】

Beschreibungen/Notizen

• The effects of a downgrade in US debt rating could be dramatic. Stock markets could tumble, as they did briefly on Apr 18, 2011, when Standard & Poor's suggested that it might downgrade the US's debt rating. Interest rates would rise, both for government debt and for corporate bonds, which are generally priced in relation to Treasury yields. In fact, a downgrade could negatively affect the prices of most assets, because financial models used to value everything from stocks to commodities and real estate use Treasuries as a proxy for the so-called risk-free rate of return.