Cleary Gottlieb’s “Corporates Face Novel, Greater Risks from Debt Ceiling Impasse—Even if No Default Occurs” explains the differences between the more commonly understood “appropriations lapse scenario,” which refers to a lack of Congressional funding, and a debt default scenario, which has never occurred, and would occur, if Republicans and Democrats fail to reach agreement on a debt ceiling increase in the relatively near term. The memo describes the expected implications on capital markets of the latter, and suggests actions companies may wish to consider in anticipation of a default—as well as in an actual default scenario—to mitigate adverse company-specific impacts. Importantly, expectations or concerns about what may (or may not) transpire have the ability to impact the markets regardless of whether a default ultimately occurs.