Colony Market Brief

May 23, 2023

Recent market concerns have centered on the banking crisis that began with Silicon Valley Bank, but attention has now turned to the debt situation of the United States Government. The US hit its $31.4 trillion debt limit on January 19, which means the government cannot technically issue any new debt—and lawmakers have yet to agree on raising the debt ceiling. Since January, the US Treasury has been using various “extraordinary” measures to continue paying the government’s obligations in full and on time—but those funds may run out in early June, triggering a sense of urgency around the debt ceiling debate. We’ve prepared a brief commentary piece to share some perspective.