{"id":141458,"date":"2010-01-05T13:12:00","date_gmt":"2010-01-05T18:12:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/pimco-80-chance-of-a-uk-sovereign-downgrade-2010-1"},"modified":"2010-01-05T13:12:00","modified_gmt":"2010-01-05T18:12:00","slug":"pimco-80-chance-of-a-uk-sovereign-downgrade","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/141458","title":{"rendered":"PIMCO: 80% Chance Of A UK Sovereign Downgrade"},"content":{"rendered":"<p>The end of QE will be a big problem in the US. Yet what happens in the UK, where the BOE is openly monetizing, once their free liquidity ends, could be a watershed event. Couple this with the likelihood of a downgrade, and the UK&#8217;s fiscal and monetary future in 2010 is looking quite shaky. Today PIMCO&#8217;s Scott Mather told Dow Jones his expectation for a rating downgrade of the island nation: &#8220;It&#8217;s just a question of when on the current trajectory, not if.<\/p>\n<p>Based on what we know today about the debt trajectory and about the inability to adjust that, I think it&#8217;s greater than a 50% likelihood for sure. <strong> Call it more like 80%.<\/strong>&#8221; And according to Mather, rates on gilts will shoot up by 100 bps once the bond-buying program ends. It is amusing that the fiscal health of the developed world now hinges on the amount of ink cartridge accessible by the two main central banks.<\/p>\n<h2><a href=\"http:\/\/www.zerohedge.com\/article\/pimco-sees-uk-rating-downgrade-probability-80-gilts-higher-100-bps\"><strong>Read the whole story at ZeroHedge &#8211;&gt;<\/strong><\/a><\/h2>\n<p><a href=\"http:\/\/www.businessinsider.com\/pimco-80-chance-of-a-uk-sovereign-downgrade-2010-1#comments\">Join the conversation about this story &#187;<\/a><\/p>\n<p><b>See Also:<\/b><\/p>\n<ul>\n<li><a href=\"http:\/\/www.businessinsider.com\/pimco-how-the-governments-huge-debt-binge-means-corporates-will-rule-in-2010-2010-1\">PIMCO: How The Government&#8217;s Huge Debt Binge Means Corporates Will Rule In 2010<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/pimco-cuts-back-on-us-uk-bonds-2010-1\">PIMCO Slams The Brakes On US, UK, And Corporate Bond Buying, Amid Massive Debt Binge<\/a><\/li>\n<li><a href=\"http:\/\/www.businessinsider.com\/pimco-bonds-love-soaring-2009-12\">Everbody Is Obsessed With PIMCO&#8217;s &quot;New Normal&quot;<\/a><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/TheMoneyGame\/~4\/i12Z28DPLGo\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The end of QE will be a big problem in the US. Yet what happens in the UK, where the BOE is openly monetizing, once their free liquidity ends, could be a watershed event. Couple this with the likelihood of a downgrade, and the UK&#8217;s fiscal and monetary future in 2010 is looking quite shaky. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-141458","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/141458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=141458"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/141458\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=141458"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=141458"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=141458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}