4min chapter

Capital Ideas Investing Podcast cover image

Debt ceiling showdown approaches 11th hour

Capital Ideas Investing Podcast

CHAPTER

The Debt Limit Dilemma

Investors should consider the default in the proper context, says Tom Hollenberg. The probability of even a technical default is probably somewhere between 5% and 10%. It would be hard to imagine that the US sovereign rating would not be downgraded at least one or two notches by those agencies post-default after making investors whole.

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