โม้อ๊ะป่าว AAA America’s credit quality is getting a boost from economic growth outpacing that of the 12 nations graded AAA. The gap between Treasury five- and 10-year note yields is wider than that for the higher-rated sovereigns, showing fixed-income investors anticipate the U.S. will grow faster than its peers, according to data compiled by Bloomberg cost to insure against default is the lowest since 2009, the dollar has risen the most since 2008 and the S&P 500 Index reached a record on Aug. 2. That wasn’t the case for S&P when it cut the U.S. to AA+ on Aug. 5, 2011. The firm cited concern that spending reductions by lawmakers in order to raise the nation’s borrowing limit wouldn’t be enough to reduce the budget deficit and that the wrangling showed the U.S. becoming less politically stable. The Treasury Department said S&P’s decision was flawed by a $2 trillion error. The ratings firm said there was no mistake and the discussion hinged on which baseline assumption should be used from the nonpartisan Congressional Budget Office.
Posted on: Mon, 05 Aug 2013 14:16:13 +0000
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