Ray Dalio, founding father of LP Bridgewater Associates, spoke in the course of the Greenwich Financial Discussion board in Greenwich, Connecticut, USA, on Tuesday, October 3, 2023.
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The founding father of Bridgewater Associates and billionaire Ray Dalio warned on Monday {that a} US sovereign mortgage score was diminished to the US treasure risk, saying the credit score company didn’t take the danger of the federal authorities merely to print cash.
“You could know that credit score scores underestimate credit score dangers as they solely consider the danger of the federal government to not pay their debt,” Dalio mentioned in a publication On the Social Media Platform XS
“They don’t embody the better danger that the international locations within the debt will print cash to pay their money owed, thus possessing the bond holders to losses from the diminished worth of cash they obtain (not the diminished amount of cash they obtain),” the Bridgewater founder mentioned.
Moody’s on Friday Cut the US credit rating One degree to AA1 by AAA, citing the finances deficit of the federal authorities for ballooning and the elevation of lengthy -distance debt funds. It was the final of the three main credit score businesses to decrease the US from the best attainable evaluation.
USA Stocks fell on Monday as 30 years of yield on the bond of the Ministry of Finance It jumped to 4.995% and the 10-year return on notes elevated to 4.521% in response to Moody lower.
“He mentioned in a different way, for many who maintain the worth of their cash, the dangers to the US authorities debt are greater than the switch of the score businesses,” Dalio mentioned.
Bridgewater belongings beneath the steerage dropped by 18% in 2024 to about $ 92 billion, Reuters reported in MarchDown from a current 150 billion greenback peak in 2021
