KBRA Releases Macro-Market Research: “Approaching the Debt Ceiling Deadline”

Kroll Bond Rating Agency (KBRA) has released a macro-market research report, “Approaching the Debt Ceiling Deadline.”

The U.S. government is once again approaching its debt ceiling deadline, with legislators last September having suspended the limit on borrowing through December 8. This comment reflects on the current state of affairs with regard to federal debt.

On December 9, unless a new funding bill is authorized by Congress, the U.S. Treasury will have to rely on extraordinary measures. Very likely, however, Democratic support will be necessary in the Senate to advance a new funding bill, but many in their ranks insist on tying this to the protection of undocumented immigrants under Deferred Action of Childhood Arrivals (DACA) program that was recently terminated by President Trump and still awaits Congressional replacement. Failure to pass a new funding bill would trigger a partial shutdown of the government as well as the expansion and re-introduction of temporary extraordinary measures¹ at the Treasury’s disposal. KBRA also notes that the many political divides hamper policymaking and may serve to maintain policy stability in spite of the large gaps in policy platforms.

To access the report, please click here.

CONNECT WITH KBRA
Twitter
LinkedIn
Download the iOS App
YouTube

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

¹https://www.treasury.gov/connect/blog/Documents/Appendix%20--%20Extraordinary%20Measures%2012-26-2012.pdf and https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/52837-debtlimit.pdf

View source version on businesswire.com: http://www.businesswire.com/news/home/20171128006072/en/

Analytical:
Kroll Bond Rating Agency
Joan Feldbaum-Vidra, 646-731-2362
Managing Director
[email protected]