On The US Downgrade

Hi everyone - this is Alf.I hope you're having a great day.
On Friday, the credit agency Moody’s downgraded the US rating by one notch to Aa1 (equivalent to AA+).
By now, you’ve probably read tens of opinion pieces arguing this is the beginning of the end, and that there will be dire consequences for the US Treasury market.
In this piece, you’re going to read a more sober and data-driven approach to this downgrade.
The first thing to understand is why Moody’s downgraded the US: ‘’ Successive U.S. administrations and Congress have failed to agree on measures to reverse the trend of large…