Downgrading USA treasury bonds

Discussion in 'Economics' started by bond_trad3r, Jun 5, 2011.

  1. Downgrading USA treasury builds doesn't make sense since all financial models have t-bills as safest investment.

    For example, if treasuires are downgraded, triple A rated debt would still have higher yield so what's the point.
  2. Theoretically, it can affect all debt that is priced "with respect" to treasuries. There will be a parallel shift of yields. :eek:
  3. If Moody's downgrades US treasuries, Moody's will become irrelevant.