Market update: US debt ceiling standoff nearing climax

Investment Manager, Jack Richards, gives an update on the US debt ceiling nearing climax and what this means for HRIS portfolios.

• The debt ceiling is the maximum amount of debt that the US government can take on and is set
  by the US Congress. This limit means the US government may soon run out of cash to spend, indeed Treasury Secretary Yellen stated this may happen as early as 1 June.
•  Market volatility has risen in recent days as negotiations for a deal to increase the ceiling stalled.
  If a deal to increase the limit is not agreed soon, this could increase the risk of the US
  government defaulting on their debt.
•  While short-term volatility may persist, the highly probable scenario is that a deal is reached in
  the next few weeks with limited long-term impact on asset prices.

Download the article here.