HOUSE_OVERSIGHT_021051.jpg
2.03 MB
Extraction Summary
2
People
7
Organizations
1
Locations
3
Events
1
Relationships
2
Quotes
Document Information
Type:
Presentation slides / financial report
File Size:
2.03 MB
Summary
This document contains two slides from a KPCB 'USA Inc.' financial presentation (pages 419 and 420) analyzing US sovereign debt and credit ratings. It features quotes from Moody's analysts Pierre Cailleteau and Sarah Carlson warning about debt affordability and negative outlooks, alongside a chart showing Treasury Swap Spreads turning negative in 2010. The document bears a 'HOUSE_OVERSIGHT_021051' stamp, indicating it was part of a House Oversight Committee production, though it contains no direct references to Jeffrey Epstein or his known associates in the visible text.
People (2)
| Name | Role | Context |
|---|---|---|
| Pierre Cailleteau | Managing Director of Sovereign Risk |
Quoted regarding the debt affordability of Aaa governments at Moody's.
|
| Sarah Carlson | Senior Analyst |
Quoted regarding the negative outlook of U.S. fundamentals at Moody's.
|
Organizations (7)
| Name | Type | Context |
|---|---|---|
| Moody's |
Credit rating agency employing the quoted analysts.
|
|
| KPCB (Kleiner Perkins Caufield & Byers) |
Venture capital firm, creator of the presentation (indicated by logo).
|
|
| USA Inc. |
Metaphorical name for the US Government used in the presentation series.
|
|
| Bloomberg |
Cited source for data.
|
|
| The New York Times |
Cited source.
|
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| The Wall Street Journal |
Cited source.
|
|
| House Oversight Committee |
Implied by the Bates stamp 'HOUSE_OVERSIGHT'.
|
Timeline (3 events)
Locations (1)
| Location | Context |
|---|---|
|
Subject of the financial analysis.
|
Relationships (1)
Both are analysts cited from Moody's within the same presentation.
Key Quotes (2)
"Preserving debt affordability at levels consistent with Aaa ratings will invariably require fiscal adjustments of a magnitude that, in some cases, will test social cohesion."Source
HOUSE_OVERSIGHT_021051.jpg
Quote #1
"…if there are not offsetting measures to reverse the deterioration in negative fundamentals in the U.S., the likelihood of a negative outlook over the next two years will increase."Source
HOUSE_OVERSIGHT_021051.jpg
Quote #2
Full Extracted Text
Complete text extracted from the document (2,293 characters)
However, in Longer Term, Credit Rating Agencies Have Begun to Worry
About USA Inc.’s Debt Affordability
About USA Inc.’s Debt Affordability
On balance, we believe that the ratings of all large Aaa governments [including
USA Inc.] remain well positioned, although their ‘distance-to-downgrade’ has
in all cases substantially diminished…Growth alone will not resolve an
increasingly complicated debt equation…Preserving debt affordability at levels
consistent with Aaa ratings will invariably require fiscal adjustments of a
magnitude that, in some cases, will test social cohesion. 1
USA Inc.] remain well positioned, although their ‘distance-to-downgrade’ has
in all cases substantially diminished…Growth alone will not resolve an
increasingly complicated debt equation…Preserving debt affordability at levels
consistent with Aaa ratings will invariably require fiscal adjustments of a
magnitude that, in some cases, will test social cohesion. 1
- Pierre Cailleteau
Managing Director of Sovereign Risk at Moody’s, 3/16/2010
Managing Director of Sovereign Risk at Moody’s, 3/16/2010
…if there are not offsetting measures to reverse the deterioration in negative
fundamentals in the U.S., the likelihood of a negative outlook over the next two
years will increase. 2
fundamentals in the U.S., the likelihood of a negative outlook over the next two
years will increase. 2
Sarah Carlson,
Senior Analyst at Moody’s, 1/14/2011
Senior Analyst at Moody’s, 1/14/2011
KP
CB www.kpcb.com
Sources: 1) Bloomberg, The New York Times; 2) The Wall Street Journal
USA Inc. | Consequences of Inaction 419
CB www.kpcb.com
Sources: 1) Bloomberg, The New York Times; 2) The Wall Street Journal
USA Inc. | Consequences of Inaction 419
Treasury Swap Spread1 Turned Negative For First Time in History2 – Now
Cheaper for Some Private Companies to Borrow than USA Government
Cheaper for Some Private Companies to Borrow than USA Government
10-Year Treasury Swap Spreads & Federal Budget Deficit / Surplus, 1988 – 2010
[Chart: Line graph showing 10-Year Treasury Swap Spreads (red line) and Federal Budget Deficit/Surplus as % of GDP (green line) from 1988 to 2010]
10yr Treasury Swap Spread (bps)
USA Federal Budget Surplus / Deficit as % of GDP (%)
USA Federal Budget Surplus / Deficit as % of GDP (%)
—10y Treasury Swap Spreads (left axis) —Federal Budget Deficit/Surplus as % of GDP (right axis)
Note: 1) Treasury swap spread = Treasury yield – swap rate (between bonds of comparable maturity); swap rate is the fixed interest rate that the buyer demands in
exchange for the uncertainty of paying the short-term LIBOR (floating) rate over time; swap rates are generally higher than Treasury yields with corresponding
maturities as they include incremental credit risk associated with the banks that provide swaps compared to Treasuries, which are viewed as risk-free. 2)10-year
Treasury swap spread turned negative on 3/24/10, while 30-year Treasury swap spread turned negative in 10/08 and shorter-term Treasury swap spreads are still
positive. Source: Bloomberg.
Note: 1) Treasury swap spread = Treasury yield – swap rate (between bonds of comparable maturity); swap rate is the fixed interest rate that the buyer demands in
exchange for the uncertainty of paying the short-term LIBOR (floating) rate over time; swap rates are generally higher than Treasury yields with corresponding
maturities as they include incremental credit risk associated with the banks that provide swaps compared to Treasuries, which are viewed as risk-free. 2)10-year
Treasury swap spread turned negative on 3/24/10, while 30-year Treasury swap spread turned negative in 10/08 and shorter-term Treasury swap spreads are still
positive. Source: Bloomberg.
KP
CB www.kpcb.com
USA Inc. | Consequences of Inaction 420
CB www.kpcb.com
USA Inc. | Consequences of Inaction 420
HOUSE_OVERSIGHT_021051
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