Quote:
Originally Posted by Bend it like Bourgeois
^^ the budget pegs a pretty meaningful jump in rates for them in 2 years. I think they are pricing in even more credit downgrades to come.
|
Since Alberta's debt market is relatively small I'm betting that bond yields will actually fall relative to the baseline for a while as liquidity builds. In any case rating agencies matter very little for government debt since the difference in 30 year yields between Alberta (which still has one of the best ratings among provinces) and Newfoundland (which has one of the worst) is about 0.2%.