The financial industry prepares for potential default, anticipating massive market volatility 

A U.S. default could disrupt equity, debt, and commodity markets, causing widespread volatility 

The secondary market for Treasury bonds would suffer, affecting derivative, mortgage, and commodity markets 

Even a short breach of the debt limit could lead to higher interest rates, plummeting stock prices, and covenant breaches 

Moody's Analytics predicts frozen short-term funding markets if the debt limit is breached 

Banks, brokers, and trading platforms make contingency plans for handling payments, ensuring liquidity, and managing contracts