The magnificent 10 triple A states, coupon up to 4% for securities with maximum reliability: here are what they are

The US also forgive the last bulwark, that of Moody’s, who removed the triple A from the United States by lowering the rating of a « AA1 » step. S&P had already done so in 2011, while Fitch’s downgrading dates back to 2023. Now to boast the maximum degree of reliability they have remained in 10 states (Australia, Canada, Denmark, Germany, Luxembourg, Norway, the Netherlands, Singapore, Sweden and Switzerland) and of these 9 have the « approval » of all three rating agencies, S&P, Moody’s and Moody’s. Fitch (for Fitch Canada is not worth triple A).

The surge of Treasury returns

The growing levels of public debt (37 thousand billion dollars) and the reimbursement costs of the interests pushed Moody’s to praise the US. « We do not believe that the reduction of expenditure and deficit can be obtained with the budget law currently under discussion, » explained the American agency. The market responded with a surge in the Treasury returns: at 10 years of age they splashed over 4.5%, while at 30 they jumped over 5%.

Australia pays at about 10 years of 4.6%,

Numbers that, despite the downgrade, remain palatable, especially if compared with the yields of the club « triple a ». In addition to Australia, which pays about 4.6%at 10 years, the others show at least a couple of percentage points of difference: Germany offers 2.6%, Sweden 2.04%, Denmark 2.13%and Singapore 2.5 percent. The yields of Luxembourg and Norway, respectively 3.6%and 4%, is a little higher, while the Swiss ten -year makes only 0.31%.

Moody’s downgrading has a psychological value

« Treasury was interesting before in absolute terms and is still now – confirms Rocco Bove, Head of Fixed Income of Kairos Partners Sgr -. In fact, Moody’s downgrading does not have a technical, but only psychological value, and reminds us that even in the panorama of free risk titles a little diversification is healthy. But eye, investing outside the euro area the performance is dirty from the currency effect « , concludes Bove.

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