Debt Ceiling Drama: Market Implications and More

WE Family Offices Managing Partner Michael Zeuner sat down again with Director of Macro Investment Strategy Sam Sudame, CFA, CAIA, CFP, for a special deep dive into what’s really happening with the federal debt ceiling situation and how that might impact investors who are investing in government securities, such as U.S. Treasury bills.

Some of the topics Zeuner and Sudame specifically address include:

• Why WE believes there are still opportunities to invest in Treasuries, specifically within fixed income markets, even amidst this backdrop
• How Treasury defaults have historically impacted the fixed income markets and how the potential for one is impacting them now
• The current outlook on whether or not an agreement to raise the debt ceiling will take place before the dreaded “X” date
• The potential long-term impacts on Treasuries if the U.S. government does end up defaulting

While the next couple of weeks may get bumpy as this situation continues, it is important to look past the volatility and maintain an eye on the long term. If you are interested in learning more about the potential debt ceiling crisis, read our recent here. As always, if you have any questions about the debt ceiling or anything else discussed during this podcast, please do not hesitate to contact us.

 
This episode was originally recorded in April 2023.

Important Information:

This podcast contains our current opinions and commentary that are subject to change without notice. Our commentary is distributed for informational and educational purposes only and does not consider the specific investment objective, financial situation, or particular needs of any recipient. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. The information contained herein does not constitute legal or tax advice to any person. Please consult with your tax advisor regarding any taxation implications of the information presented in this presentation.

Private market and certain fixed income investments are very risky and should only be incorporated in a portfolio after a careful assessment of the private investment’s offering materials and other information in consultation with your investment, tax, and legal advisors. Private market and certain fixed income investments are often less liquid than traditional investments and among the primary risks are long term illiquidity, lack of transparency, lack of control of the investment vehicle and investment decisions, and in the worst case, the total loss of your investment.

Certain statements contained herein may constitute “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “target”, “project”, “estimate”, “intend”, “continue” or “believe” or the negatives thereof or other variation thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance may differ materially from those reflected or contemplated in such forward-looking statements. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions.