How ‘Cliff’ Could Affect Bonds: Sean Egan     Text Size  
Published: Thursday, 27 Dec 2012 | 2:34 PM ET By: | Online
Producer How 'Cliff' Will Affect Bonds: Sean Egan If the U.S.
economy goes over the "fiscal cliff," one investment will still
be the safest bet, says Sean Egan of Egan-Jones Ratings Company.
If the U.S. economy goes over the "fiscal cliff," bonds will
remain a safe haven, Sean Egan of Egan-Jones Ratings Company
said Thursday on CNBC.  "The assumption is that the U.S. has
incredibly deep pockets, and even if it's downgraded a notch or
a couple notches, it's still the safest place to be of all the
alternatives in the developed market," he said on "Futures Now."
One potential headwind could come from interest rates starting
to ratchet up once the economy picks up, but Egan said that
wouldn't happen for another 12 to 18 months.  "I think there's a
lot of tension being worked out," he added. "The biggest
difficulty right now is the developing currency war whereby
Japan is trying to devalue their c