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To: expat_panama

Alas I should have excerpted the mentioning that this rating agency is probably more of a Chinese publicity arm rather than an official rating agency. About the only good thing about T-bill’s interest is that my TSP G Fund will receive a nice bump.


49 posted on 10/18/2013 1:18:43 PM PDT by Jumper
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To: Jumper
good thing about T-bill’s interest is that my TSP G Fund will receive a nice bump.

Maybe not; the thing to remember about bond values is that when interest rates go up today on new bonds being sold, it means that the bonds you bought yesterday won't be worth as much when you try to sell them.  Rising interest rates mean share prices of bond funds drop.  Counter intuitive and I remember getting that question wrong on my college econ test, but I get reminded often on how it works.

Just the same, this Chinese rating downgrade appears to have the backing of the market place so I'll believe it.  Contrast that to the downgrade Moodys (iirc) gave a few years ago that was followed by soaring values on US debt.  Moodys ratings became a joke.

50 posted on 10/18/2013 2:01:26 PM PDT by expat_panama
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