As the White House and top Republican lawmakers are stuck at an impasse over the debt ceiling, the cost of insuring exposure to U.S. government debt has touched record highs. Spreads on 1-year credit default swaps (CDS), a market-oriented measurement of default risks, climbed to a record high of 172 basis points on May 10….
IN-DEPTH: Market Jitters Over Debt Ceiling Impasse Sends Cost of Insuring Against Default to Record Highs
Debt Ceiling Fight Starting to Take Toll on Markets
As the White House and top Republican lawmakers are stuck at an impasse over the debt ceiling, the cost of insuring exposure to U.S. government debt has touched record highs. Spreads on 1-year credit default swaps (CDS), a market-oriented measurement of default risks, climbed to a record high of 172 basis points on May 10….
Probability of Debt Default Has Risen 300 Percent Since Start of Year: Report
The probability of a catastrophic U.S. debt default has risen by 300 percent since the start of the year. A recent report from MSCI, an American financial service provider, warned about the tripling of a debt default and said that Congress must pass a spending bill to avoid a disaster in the next few months. “Implied default probabilities have…
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