SEB Bank: US default unlikely

In opinion of SEB Bank analysts, chances of US default caused by failure to raise the ceiling is extremely unlikely, but brinkmanship could still cause severe turmoil in markets later this year.

Key Quotes

“Experiences from 2011 show that the impact on markets, primarily equity and bond markets, could be substantial.”

“If the debt ceiling has not been raised or suspended as we move into the second quarter, we should expect market worries to start emerging.”