|
|
Michael Lewitt From Kirsten Bischoff, Opalesque New York:
As the Standard and Poor’s downgrade of the creditworthiness of the US makes its first path around the world to opening markets, some US institutions took to the wires on Sunday to calm nerves, and to indicate that they believe much of the expected downgrade was priced into last week’s US market drop.
"The downgrade of U.S. sovereign credit by S&P on Friday reflects facts that have been well known to the market for some time. So, it does not imply a fundamental increase in risk, and we don’t believe that investors should change their behavior based solely on the downgrade. However, in combination with continued economic weakness and regulatory uncertainty, this may provide a signal to some investors to reassess their risk appetite," read a statement released by BlackRock on Sunday evening.
The asset management firm, which has also been high on the list of "go-to" firms for the current US Presidential Administration throughout the financial crisis, also did its best to assuage fears, by basically saying that it did not expect to add to any selloffs that might continue as the new week begins. "BlackRock has been preparing for the possibility of downgrade over the past month, and, the firm has no need to execute any forced selling of securities in response to the S&P action," the statement also said.
Confidence in developed nations making their way out of the financial crisis is rapidly disappearing and while this...................... To view our full article Click here
|
|
RSS
