The likely downgrading of America’s sterling AAA debt rating by Standard & Poor's, which some analysts suggest might happen later this month, could cause a “severe” impact on fixed income markets “for some time,” according to Sanford Bernstein analyst Brad Hintz.

One result: a hit to the revenue of big trading firms like Goldman Sachs and Morgan Stanley as a downgrade leads to “a period of one-way markets” on trading desks.

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