ICYMI, a note from Moody's late last week on their outlook for US sovereign debt. It flags the 'Red Sweep' (note - still awaiting this) as a specific risk:
- "In the absence of policy measures to help limit fiscal deficits, the federal government's deteriorating fiscal strength will increasingly weigh on the US sovereign credit profile."
- "Given the fiscal policies Trump promised while campaigning, and the high likelihood of their passage because of the changing composition of Congress, the risks to US fiscal strength have increased."
- "With Republican control of the Legislature and the Executive, policy shifts could be implemented quickly."
Trump's win has been bullish for much of 'risk' (check out this BTC update!) but bearish for bonds.
