Standard & Poor’s downgraded U.S. debt, removing the coveted AAA rating in early August.  But, the U.S. treasury has the ability to set tax rates and print money – unlike securities backed by subprime loans which often times have maintained a AAA rating.

Make sense to anyone?

Apparently not. 

Since the downgrade investors have purchased U.S. debt, further lowering its yield (even though it is now more “risky”) – below  the yield on better rated, AAA commercial mortgage backed securities.