HSBC says default don't scare us

If Treasury has to delay payments, Major and Dyer say bonds could be bifrucated into the "delayed" component and the "normal" component, and bonds without delayed payments could continue to be traded as usual. Essentially, there are mechanisms in place to subdue the "damage" of delayed payments, they argue. "If the delayed coupon is stripped from the rest of the bond (as it is owed to the holder of record), then the rest of the bond's cash flow looks like those of any other bond that has no coupon delay," Major and Dyer write. "The bond could continue to be traded as if there were no delay. The "impact of a U.S. Treasury payment delay on the U.S. bond market may well be a managed disruption, not a catastrophe," they conclude. Read more: http://www.businessinsider.com/default-wouldnt-be-that-bad-2013-10#ixzz2hEqhnqxq

That is HSBC with US$494 billion under management.