I was under the impression that there were funds that were legally required to not anything lower than a certain value, but those values were much lower than AAA (AA or AA-).
Which funds cannot hold anything lower than AAA, and are they really big enough to dump enough US bonds to make a difference?
The only ones I can find that are strictly AAA are either all-corporate to begin with, or explicitly say that they invest in "AAA-rated U.S. Treasury and agency securities" or similar language. Which is awkward if there is no such thing, but it's not clear it'd require them to sell off, since there's nothing eligible to move to.
Checked on BB. It looks like $80B of invested assets across bond funds with any reported information would be affected (which is paltry, considering the full run of US treasuries far exceeds $10T)
Which funds cannot hold anything lower than AAA, and are they really big enough to dump enough US bonds to make a difference?