The United Kingdom – who for centuries used its superior finances to fund a global empire – may loose its AAA credit rating. S&P downgraded the UK’s outlook to negative in a report that was highly critical of the UK government’s increased borrowing.  Gross debt levels will reach 100 percent of GDP next year, and the government is currently running a fiscal deficit of 12.4%. The ratings agency affirmed its AAA rating for the moment, but it may just be a matter of time before AAA rated Helsinki becomes less a credit risk than London.

The UK has no equivalent of TBT, however investors may want to consider shorting the iShares FTSE All Stocks Gilt (IGLT), an ETF that tracks the price of UK government bonds at all maturities or shorting the iShares MSCI United Kingdom Index (EWU), which tracks the broad UK share market.