Canadian Banks a Safe Haven in Event of Default

Although lawmakers will most likely reach a compromise regarding the $14.3 trillion U.S. debt ceiling, investors should contemplate a downgrade by at least one credit rating agency, and its possible effects on the economy and interest rates, CNBC said.

In the unlikely event of a default, there would be broad implications for the economy, currency and the bond and equity markets.

"There would be major disruptions in payments creating a liquidity event and a general 'freezing up' of the financial system and economy," the report stated. "The only relative safe haven in our North American equity coverage universe would be Canadian banks, and even they would likely be impacted from the spillover of a weakened U.S. economy."

Find out more at http://www.cnbc.com/id/43944233