S&P and Moody's Investor Services have placed the U.S. government under watch for a possible downgrade of its triple-A Treasury bonds. With the nation possibly losing its risk-free status, investors have been eyeing other sovereigns with stellar ratings as alternatives. Among them: Australia, Canada, Germany and the Netherlands.
But the pool of investable AAA-rated assets around the world is nowhere near as deep as that of the U.S. The nation offers the widest and most liquid range of such assets with more than $11 trillion outstanding, compared with roughly $7 trillion of all other outstanding triple-A rated government paper.
Nevertheless, investors are looking ahead, with some safe-haven flows reportedly already moving to the U.K., Canadian, Australian and Swedish bond markets.
Guernsey might just be next.
The business lobby has entered the debt ceiling debate at the 11th hour with only a whimper, considering the stakes of a default for corporations.
