AAA

Investment strategists and asset allocation heads have labelled last week's fiscal cliff deal a ‘short-term fix', which could spark a fresh round of sovereign debt downgrades in the coming months.

UK interest rates will stay at historic lows for four more years as the economy struggles to return to normal growth levels, Citi has predicted.

Standard & Poor's has become the third main credit rating agency to put the UK's AAA rating on "negative" watch.

Britain could lose its AAA credit rating after George Osborne admitted he will miss his target to reduce Britain's debts and have to borrow an extra £100 billion.

It has been a hectic year for investors, with the eurozone debacle driving core bond yields to record lows, while equity markets were buffeted by fears over China and the US.

Jane Wallace reports from our recent fixed income event.

FIXED INCOME

BlackRock's iShares has launched the first ETF to offer exposure to global AAA and AA rated government bond exposure.

Ratings agency Fitch has warned the UK's AAA credit rating is under increasing pressure because of growing government debt, which could hit 100% of GDP this year, and the continuing eurozone crisis.

EUROPE