Skip to main content
    More Results
      More Results
        More Results

        From Sectors and Smart Beta to Fixed Income, SPDR Exchange Traded Funds (ETFs) give you wide access to diverse investment opportunities. Find out more.

        Okay
        Weekly Market Update

        Fitch’s Downgrade – Really an Event?

        Dane Smith
        Senior Investment Strategist

        Insight of the Week

        •  There has been some commotion around Fitch’s recent downgrade of the US from AAA to AA+.
        •  A lot of institutional investors have been questioning the potential impact of this downgrade on their strategic portfolios.
        •  Overall, we believe investors need not be too worried about this event. US Treasuries will continue to remain a safe haven with top-notch liquidity.
        •  The description of the rating has been downgraded from “Extremely High Quality” to “Very High Quality” which in terms of US Treasuries doesn’t hold a significant impact since many mandates specifically call for US Treasuries, rather than AAA rated sovereign bonds.
        •  A one rating downgrade should not necessarily hamper credibility & attractiveness.
        •  In 2011, S&P made this same rating downgrade on the US, where it remains to this day.
        •  Evidence since then shows there really hasn’t been a material impact from the downgrade.
        Read the Latest

        More on Market Perspectives

        This information is for informational purposes only, not to be construed as investment advice or a recommendation or offer to buy or sell any security. Investors should always obtain and read an up-to-date investment services description or prospectus before deciding whether to appoint an investment manager or to invest in a fund. Any views expressed herein are those of the author(s), are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different clients. There are no guarantees regarding the achievement of investment objectives, target returns, portfolio construction, allocations or measurements such as alpha, tracking error, stock weightings and other information ratios. The views and strategies described may not be suitable for all investors. SSGA does not provide tax or legal advice. Prospective investors should consult with a tax or legal advisor before making any investment decision. Investing entails risks and there can be no assurance that SSGA will achieve profits or avoid incurring losses.

         

        Past performance is not a reliable indicator of future performance. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted. 

        © [[]] %%State Street Corporation%%. All rights reserved.