A US debt default could create a tidal wave of capital reductions at banks worldwide

In a speech last month US Secretary of the Treasury Janet Yellen said “A default on our debt would produce an economic and financial catastrophe. A default would raise the cost of borrowing into perpetuity. Future investments would become substantially more costly.” As the X-Date approaches, big questions will arise on the impact of US Treasury pricing for regulated entities and their counterparties.
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