FIG investors keep calm on UK risk ahead of Brexit election
Participants in the financial institutions bond market have displayed calm in the run-up to the UK general election next week. A lingering credit premium for the country’s banks, to cover for risks related to Brexit and the economy, has left investors feeling comfortable about any likely outcome of the vote.
UK bank bond spreads have been rallying ahead of the general election, which will take place on December 12.
Recent election polls indicate that the Conservatives are likely to win a parliamentary majority.“It’s fair to say that the market is currently being very complacent with regards ...