The Issue of Implicit Support for the TVA

Will the Fed back the TVA in case of default? "Market expectations that the Federal Government would act to prevent a default, should that possibility ever arise, are just expectations and not necessarily a reality. Although the market views a TVA debt default as "highly unlikely," there is no absolute guarantee that the market view is infallible."

Report link: http://www.eia.doe.gov/oiaf/servicerpt/subsidy1/boxtxt_2.html