Paul Krugman Believes Ratings Agencies 'Are Just Irrelevant' — 'I'm Terrified About The Possible Implications Of Actual Default'
Portfolio Pulse from Bhavik Nair
Economist Paul Krugman believes ratings agencies are irrelevant and is concerned about the potential implications of a US debt default. Fitch Ratings placed the US 'AAA' Long-Term Foreign-Currency Issuer Default Rating on Rating Watch Negative due to the debt ceiling crisis. Treasury yields have been affected, with the iShares 1-3 Year Treasury Bond ETF (SHY) and Vanguard Short-Term Treasury Index Fund ETF (VGSH) experiencing losses.
May 26, 2023 | 4:29 am
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NEGATIVE IMPACT
The iShares 1-3 Year Treasury Bond ETF (SHY) closed 0.22% lower amid concerns over the US debt ceiling crisis and potential implications of a default.
The debt ceiling crisis and potential implications of a US default have led to increased uncertainty in the market, causing the iShares 1-3 Year Treasury Bond ETF (SHY) to close 0.22% lower. As the situation remains unresolved, it is likely to continue impacting the ETF's performance in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Vanguard Short-Term Treasury Index Fund ETF (VGSH) lost 0.21% due to concerns over the US debt ceiling crisis and potential implications of a default.
The ongoing debt ceiling crisis and potential implications of a US default have increased market uncertainty, leading to a 0.21% loss for the Vanguard Short-Term Treasury Index Fund ETF (VGSH). As long as the situation remains unresolved, it is likely to continue impacting the ETF's performance in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80