Hong Kong pensions intend to cut USTs if the US loses its AAA grade, via Bloomberg
Analysis details (10:30)
Follows reports on May 20th:
- Hong Kong pension fund managers are reportedly sounding the alarm of potential forced selling of US Treasury holdings following Moody's downgrading US' rating, according to Bloomberg sources.
- Hong Kong Investment Fund Association (HKFIA) has recommended that an exception to the maximum 10% holding rule is made for US Treasuries, to allow funds to invest above the limit even if the US is rated one notch below AAA, according to the sources.
- Japan's R&I still has an AAA rating (outlook stable) on the US, and is not considering a downgrade currently "don't believe the situation described there has significantly changed".
11 Jun 2025 - 10:28- Fixed IncomeImportant- Source: Newswires
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