US will lose AAA rating: Pimco
Bill Gross, manager of the world’s biggest bond fund, has warned the United States will eventually lose its top AAA credit rating, a fear that had already spooked financial markets on Thursday and could keep the US dollar, stocks and bonds under heavy selling pressure.
The United States will face a downgrade in “at least three to four years, if that, but the market will recognise the problems before the rating services - just like it did today,” Gross said.
Gross, the co-chief investment officer of Pacific Investment Management Co and manager of the Pimco Total Return Fund, which has $US154 billion in assets, earlier said that market declines on Thursday were due to investor fears that the United States is “going the way of the UK - losing AAA rating which affects all financial assets and the dollar.”
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Sydney Morning Herald