Rates and Ratings

The outlook for UK credit rating was cut to negative by S&P.
There's talk of something similar coming down the line for the US by the head of a major investment company that specialises in bonds.

Meanwhile, US 10 year treasury interest rates went up 0.21% overnight, from 3.16% to 3.37%, continuing a recent run up from a bit over 2%. This is the rate that the US pays to borrow money. This is particularly significant, since most other debt is seen in the light of "is x% less safe than US government debt". This is directly and immediately impacting Australian government debt, which has gone from below 4.4% to 5.2% in the last month, with an expected translation from there into all long-term debt rates in Australia.

What this really means is that anyone refinancing debt now will have a much harder time, whether it be a personal loan, home loan, or large corporate loan, and they'll have to pay a higher rate. A number of on-edge companies will be pushed over really soon should this trend continue, and a number of on-edge individuals will find themselves in foreclosure/bankruptcy proceedings.