There's really only one thing to talk about today and you know what it is, the debt ceiling.

This is the markets, a new series from Goldman Sachs exchanges.

Hi, it's Sam Grobart.

Today, I'm joined by Kansas Say from Goldman Sachs Asset Management

to talk about the debt ceiling and what it means for investors.

I also want to note here that we're recording this Thursday morning and of course a lot can change

but there's a lot of great analysis to dig into here. Candice, thanks so much for joining us today.

Sam, always great to be with you.

So let's take a look at equity markets which have been pretty

resilient in the face of a looming debt ceiling crisis. Why do you think that is?

Well if you think about the equity markets, it really hasn't moved much.

To put into context in the last six consecutive weeks, the S&P 500 really hasn't moved more

than 1% on a weekly basis.

So I would attribute that to having President Biden,

Speaker McCarthy, a number of different Congress folks coming out to say that an

agreement should be reached. So I think that's the real reason why the

markets have really taken the debt ceiling

negotiations in stride. Do you think in any way that the market has already begun to

price in a default? I think it really depends on where you're looking at.

If you're looking at the Treasury market, you're looking at yields,

particularly yields that set to mature T-bills on June 5th through June 15th. If you're looking

at T-bills that could be impacted by mispayments, then the yields already have reached 6%.

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