The Key Points That Could Complicate a Debt-Limit Deal

  • Stocks have shown no sign of broader investor concern
  • Pathway to resolution sees number of legislative hurdles
Is the United States About to Fall Behind on Its Loans?

Republicans and Democrats aren’t alone in playing chicken over the federal debt limit — investors, too, are staring down at the risk of financial catastrophe.

While pockets of the US Treasury market, along with a number of derivatives contracts, have reflected rising concerns about a potential federal payments default, that’s not true for the stock market. The S&P 500 Index is up about 8% for the year.