Credit default swaps covering U.S. debt have jumped during the past two weeks, accompanied by a modest increase in volume. The cost for one-year CDS has topped the cost for five-year CDS for the first time since 2011. Despite the increased activity, the U.S. CDS market remains incredibly small compared with the global CDS market for sovereign and corporate debt. "No one really believes [a U.S. default] will happen," PVE Capital Chief Investment Officer Gennaro Pucci said.

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