A few financial institutions are doing just that — betting the government will default on its debt if Congress can’t agree to raise the debt ceiling this month.
If the U.S does default, they could reap a total payout of around $3.4 billion.
Sound like a lot? Actually, investors seem less convinced that a default will occur this time around than they were during the last big debt ceiling scare in the summer of 2011. Back then, they held contracts that would have paid out about $5.6 billion in the event of a default, according to the Depository Trust and Clearing Corporation.
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