Analysts at Brown Brothers Harriman have noted reports of progress in the ongoing fiscal cliff discussions and corresponding risk taking. Seeing two areas of compromise, they begin by asking that if taxes on high income are to rise, what is the definition of high income? “Under the Bush tax cuts, it was $250k. Republican negotiators seek to raise it to $1m. Obama has offered $400k. Both sides, though, seem amenable to changing how the cost of living adjustment for some benefits is calculated to use a chain CPI measure.” Leaving the technicals aside, they note that this would have the net effect of slowing the rise in benefit spending and both sides have been criticised in the past by their own members for compromising too much too early. While there has been some movement, there is no deal in hand and the team feel that it still looks likely to go to he wire, if not a bit later.