Goldman Sachs: Foreign investors unlikely to give up U.S. Treasuries
Online reports that although Moody's downgraded the credit rating of U.S. Treasuries, foreign investors are unlikely to abandon the U.S. Treasurys market because there are currently no suitable alternatives. Lindsay Rosner, head of multi-industry investment at Goldman Sachs Asset Management, said: "Globally, there are very few countries with AAA sovereign credit ratings, actually close to 11, but if you look at the size of these countries 'bond markets, you will see that they are dwarfed by the size of the U.S. Treasury market." "In the final analysis, the U.S. market has a depth and breadth that other markets don't have." She also said that if long-term Treasury yields stay above 5%,"we will eventually reach a tipping point where hedging effects, especially spreads, will start to become attractive."
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