According to The Kobeissi Letter, the 1-year U.S. credit default swaps (CDS) have recently reached 52 basis points, close to the highest level so far in 2023. Excluding the 2023 debt limit crisis, this marks the highest insurance cost for U.S. government defaults in 12 years.
Additionally, the outstanding amount of U.S. CDS increased by about $10 billion this year, reaching $39 billion, matching the second-highest level since 2014.
Investors are increasingly concerned about the rising U.S. defic