"Record High Credit Default Swaps and Investor Exodus Amid US Debt Ceiling Impasse"
The cost of insuring exposure to US government debt rose to fresh highs on Wednesday, as President Joe Biden and top lawmakers remained deadlocked in talks over raising the $31.4tn federal borrowing limit. The cost of insuring US debt against default for five years stood at 73 basis points, touching the highest level since 2009. A protracted legislative fight around the US debt ceiling could lure panicky buyers of insurance against a government default in coming weeks, as Treasury Secretary Janet Yellen said the government may be unable to meet all payment obligations as soon as June 1.