CHART OF THE DAY: Government-Exposed Stocks Aren't Pricing In A Debt Ceiling Debate At All

Washington D.C. is setting up for yet another budget battle that threatens to shut down the government and potentially cause the U.S. to default on its debt. Yet, investors don't seem to be too worried. The volatility index — a measure of investors' expectations for big price swings — are near their post-financial crisis lows. "We estimate that little or no volatility premium for the debt ceiling debates is priced into the options markets on stocks most exposed to government spending cuts," ...