The Impending US Debt Default: What It Means for Wall Street and Your Investments

Wall Street banks and asset managers are preparing for the potential fallout from a possible US government debt default as talks over raising the $31.4tn debt ceiling go down to the wire. The financial industry has prepared for such a crisis before, but this time, the relatively short time frame for reaching a compromise has bankers on edge. Banks, brokers, and trading platforms are prepping for disruption to the Treasury market, as well as broader volatility. The Securities Industry and Financial Markets Association (SIFMA) has a playbook detailing how Treasury market stakeholders would communicate ahead of and during the days of potential missed Treasuries payments.