Looming behind market fears over the prospect of a historic US default is the less-discussed risk of what would follow a deal to resolve the debt-ceiling impasse.
Many on Wall Street predict lawmakers will ultimately reach an agreement, likely averting a devastating debt default, even if it goes down to the wire. But that doesn’t mean the economy will escape unscathed, not just from the bruising standoff but also as a result of the Treasury’s efforts to return to business as usual once it can ramp up borrowing.
Ari Bergmann, whose firm specializes in risks that are hard to manage, says investors should hedge for the aftermath of a Washington resolution.
Read More : Wall Street Concerned About Potential $1 Trillion Aftershock Resulting from Debt Deal