Now it is official, US Treasury bond is rated as AA+, not AAA by S&P. it is the first time in history that the US government bonds were downgraded by a rating agency. (although in early days of America, government bonds performed much worse.)
What does this mean to investors? Well, higher borrowing cost for the Treasury and lower stock price overall. When the WACC (weighted average cost of capital) moves up, equity valuation will move down. In the world of institution investors, we...
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