Guernsey (and other triple-A sovereigns)
Guernsey (and other triple-A sovereigns)
As one of 19 sovereigns rated triple-A by Standard & Poor's, this tiny affluent Channel Island off the Coast of Normandy could soon be considered a safer place for investors to park their assets than the U.S.

S&P and Moody's Investor Services have placed the U.S. government under watch for a possible downgrade of its triple-A Treasury bonds. With the nation possibly losing its risk-free status, investors have been eyeing other sovereigns with stellar ratings as alternatives. Among them: Australia, Canada, Germany and the Netherlands.

But the pool of investable AAA-rated assets around the world is nowhere near as deep as that of the U.S. The nation offers the widest and most liquid range of such assets with more than $11 trillion outstanding, compared with roughly $7 trillion of all other outstanding triple-A rated government paper.

Nevertheless, investors are looking ahead, with some safe-haven flows reportedly already moving to the U.K., Canadian, Australian and Swedish bond markets.

Guernsey might just be next.


Last updated July 29 2011: 10:40 AM ET