The Treasury Department said it's facing a June 1 deadline that if missed means it would be forced to delay or even miss bond payments, which is unprecedented.
"Leading up to that point, we expect risk assets to undergo a period of heightened volatility amid a flurry of headlines on progress toward a compromise that would avert a U.S. default," Saira Malik, chief investment officer at Nuveen, wrote in a note Monday. "We think a deal will ultimately be hammered out by the deadline, even if it's a short-term fix that kicks a more"permanent" solution down the road. In the meantime, it would be prudent for investors to prepare for a less favorable outcome by positioning their portfolios to better weather the potential storm," wrote Malik. its entire Tesla stake in the first quarter - cashing out on the EV's maker's 2023 rebound.