Debt Ceiling Worries Shake Markets and Consumers Alike

As the US government approaches another debt-ceiling crisis, investors are turning to credit-default swaps, an insurance contract whose price is seen as the probability of the US defaulting on its Treasury debt. However, quirks in the market may distort this probability, and buyers should beware. As of April 19, investors were willing to pay $9,600 a year to insure $1 million in US Treasury debt, up from $1,400 at the start of the year.