Recent analysis by The Kobeissi Letter reveals that one-year U.S. credit default swaps (CDS) have reached a significant high of 52 basis points, approaching the peak levels observed in 2023. This increase signifies a surge in perceived risk associated with potential U.S. government debt defaults. Data indicates a heightened cost of insuring against such risk, reaching its highest point in 12 years when excluding the debt ceiling crisis of 2023. Additionally, outstanding U.S. CDS have climbed by approximately $1 billion this year to reach $3.9 billion, marking the second-highest level since 2014. Investors are concerned about the rising U.S. government deficit, prompting heightened risk concerns as the debt ceiling crisis has yet to be fully resolved, potentially increasing the likelihood of a future default.