We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

UK at Risk of Ratings Upgrade

Generali
Generali Posts: 36,411 Forumite
10,000 Posts Combo Breaker
in Debate House Prices & the Economy
http://www.telegraph.co.uk/finance/economics/10489768/Derivative-markets-have-already-upgraded-Britain-to-AAA.html

CDSs (a kind of 'insurance' against bond default) on UK Gilts are already being priced as if AAA. Expect the ratings agencies to follow suit.
«13

Comments

  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Very rare to see a ratings upgrade. Would be interesting to see if a full set of AAA from all the ratings agencies will come. I don't think that has ever happened before.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Be interesting to see how markets move over the coming months as the General Election nears.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    AndyGuil wrote: »
    Very rare to see a ratings upgrade. Would be interesting to see if a full set of AAA from all the ratings agencies will come. I don't think that has ever happened before.

    They do happen quite often further down the food chain but an upgrade to AAA is rare I believe, not that I'm a watcher of credit ratings as a rule.
  • Loughton_Monkey
    Loughton_Monkey Posts: 8,913 Forumite
    Part of the Furniture Combo Breaker Hung up my suit!
    Will be fun (if achieved) to see Gideon and Carney jostling for who deserves the credit!
  • Yorkie1
    Yorkie1 Posts: 12,238 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Why would an upgrade be a 'risk' to the UK economy?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Yorkie1 wrote: »
    Why would an upgrade be a 'risk' to the UK economy?

    The upturn may only be temporary. As it's consumer spending that's driving growth. Fundamental issues go unresolved.
  • Masomnia
    Masomnia Posts: 19,506 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Yorkie1 wrote: »
    Why would an upgrade be a 'risk' to the UK economy?

    I read that as Generali's subtle sense of humour.
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    Yorkie1 wrote: »
    Why would an upgrade be a 'risk' to the UK economy?

    As Masomnia says, it is my attempt at humour.

    Investors will often talk about 'upside risk' and 'downside risk'. I guess this would be an upside risk.
  • michaels
    michaels Posts: 29,223 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    May be Gen had bought some of those CDSs and is sitting on a loss?

    More generally I thought it was only one of the agencies that had downgraded the UK in the first place or did all 3 do so in the end?
    I think....
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    michaels wrote: »
    May be Gen had bought some of those CDSs and is sitting on a loss?

    More generally I thought it was only one of the agencies that had downgraded the UK in the first place or did all 3 do so in the end?

    IIRC, Moody's and Fitch both downgraded you with S&P putting the UK on negative watch.

    Plus Britain got downgraded by the Chinese one too. They're a bit of a law into themselves though.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.5K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.1K Work, Benefits & Business
  • 600.7K Mortgages, Homes & Bills
  • 177.4K Life & Family
  • 258.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture