HITTING HOME: THE STATE OF THE RESIDENTIAL REAL ESTATE MARKET
Down to the Wire: Daleep Singh Examines the U.S. Debt-Ceiling Crisis, Potential Outcomes, and Probabilities
With “x-date” looming, concerns about a potential default are weighing on financial markets and the global economy. As the nation’s solvency hangs in the balance, Daleep Singh, PGIM Fixed Income’s Chief Global Economist and Head of Macroeconomic Research, joins this episode of All the Credit® to discuss this U.S. government fiscal fiasco.
To begin, Daleep lays the groundwork with a brief history of the U.S. debt ceiling, including some of the recent impasses that may act as a guide for the current situation. Daleep then provides his take on the potential outcomes of this debt debacle with estimates on the probabilities of each outcome. Our discussion wraps up with considerations on the most likely path forward for the U.S. government, and the economic, market, and investment implications that investors should watch for.
Alyssa Davis, U.S. Investment Grade Corporate Bond Portfolio Manager, cohosts this episode.
Recorded on May 8, 2023.
Run of show
00:00 Mike’s and Alyssa’s introduction
02:50 Welcome Daleep Singh
04:20 Review of the history of the debt ceiling
05:55 Dissecting recent impasses
09:42 Where do we stand and what are near term trigger points?
14:40 Potential scenarios and probabilities
17:00 How Daleep sees everything playing out
19:52 Possible impacts on the market
23:16 Daleep’s final thoughts
24:27 Closing remarks
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