Will China Shed U.S. Dollar Assets?
Posted on February 16th, 2010 by MoverMike
Forest Jones at Moneynews reports that China is ready to shed risky dollar-denominated assets from foreign reserves. That would mean that assets like corporate debt as well as municipal and state bonds would be jettisoned, while keeping U.S. Treasuries or agency mortgage debt such as Freddie Mac that have Washington’s backing.
That doesn’t bode well for states looking to rollover debt and issue more.
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