"It’s very likely that a downgrade of the credit rating of the U.S. would trigger a sell-off, but it’s far from clear that investors would sell U.S. government debt. More likely the investors would sell risk assets—equities, high yield corporate bonds, mortgage securities—and actually buy U.S. government debt.
What's certain is regulations won’t require most holders of Treasury debt to sell after a downgrade.
The logic of why investors would buy Treasurys even if they are downgraded is relatively simple."
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