JPMorgan Chase & CoStrategist Jay Barry said at an event at the Brookings Institution on Tuesday that the risk posed by the current debt ceiling "seems moderate" because investors seem willing to buy cheaply, given the abundance of capital in the financial system.
The current risk is about half of what it was in 2011 and 2013, he said, because it was not seen spreading across the yield curve.
While investors are anxious about potential defaults, causing Treasury yields to rise, "there is a lot of liquidity and there are other less constrained investors who seem to buy these securities once prices go down," he said.
However, there was some misalignment in the yield curve around October 21 relative to longer-dated Treasuries.