Brian Romanchuk — The U.S. Debt Limit (Preliminary Primer)

The debt limit in the United States is currently not an object of worry, but it represents one possible avenue to default. From the perspective of a non-American, it is rather difficult to understand how such a strange custom could arise. This article outlines very briefly the history of the debt limit, and then moves to discuss the risks associated with it. This issue underlines the argument that default risk in floating currency sovereigns is political risk, not financial....

Bond Economics
The U.S. Debt Limit (Preliminary Primer)
Brian Romanchuk

Bloomberg — U.S. Default? Unlikely, But Bond Traders Are Taking No Chances

While Republican leaders are confident their party can set aside its differences to resolve the latest debt-limit impasse before the clock runs out sometime between late September and mid-October, investors are shying away from Treasury bills earlier than they have in the past....

Bloomberg
U.S. Default? Unlikely, But Bond Traders Are Taking No Chances
Brian Chappatta and Alex Harris