British debt trading as it if it has lost AAA credit rating

Discussion in 'Wall St. News' started by MohdSalleh, Mar 1, 2010.

  1. British government debt is already trading at prices that suggest it has lost its prized top credit rating, heightening concerns that investors already view gilts as less than triple A-rated assets and demand greater rewards for holding them.

    Since the end of November, the gap between the interest rate Britain and Germany must pay on 10-year government debt has risen from 0.35 percentage points to 0.9 points.

    British government bond yields – the cost of servicing government borrowing – have risen above those of Italy for the first time since mid-2008. Britain has to pay much more to borrow than other triple A-rated economies such as Germany, France and the US.
  2. Which country deserves a "top credit rating"? All of the central banks have been printing money at 15-25% rate for several years, and few have any reserves at all.