News
Economist: The $23B Bond Downgrade Could Trigger More US Real Estate Buys
DO NOT USE
Since 2006, the S&P has downgraded 13 Chinese companies and upgraded one this year—the worst ratio in 10 years. $22.6B of offshore bonds are now one step above junk status in their ratings from the three major ratings agencies.
Bisnow
Director of Georgia State University's Economic Forecasting Center Rajeev Dhawan tells us that, while the downgrading of Chinese bonds has no direct impact on the US economy, it could lead to more foreign investors using the US as their safe deposit box.
"On one hand, China’s economy slowing down means they have less money to invest in ours,” Rajeev tells Bisnow. “But at the same time, if their bonds are downgraded, then the money that used to buy that bond will go into the secure stuff in the US.”
