Is the US Credit Rating Downgrade a Nothingburger?
The Breakdown
00:00
The U.S. Downgrade to AAA Is a Big Deal
In 2011, many financial contracts were written that collateral had to be AAA rated. Since the U.S. was split-rated and still AAA, it dodged the bullet. Most of these financial contracts have been rewritten to include debt backed by the government. So in some ways, this is a big deal, at least in terms of what it might imply for the future,. In other ways not being much of a deal at all.
Play episode from 13:51
Transcript
