The debt ceiling debate isn’t worrying Wall Street yet. In Bank of America’s latest fund manager survey, 71% of investors said they expect a debt ceiling resolution before the “X-Date.”
The survey conducted from May 5-11 showed a 9-percentage-point drop in confidence from a month prior that the U.S. will reach a resolution despite Treasury Secretary Janet Yellen recently circling June 1 as the date the U.S. may no longer be able to pay its obligations.
When asked in the survey what the biggest tail risks facing markets are, the U.S. debt ceiling was at the bottom of the top five answers, representing 8% of responses. A “bank credit crunch & global recession,” topped concerns with roughly 1-out-of-3 respondents focused there.