Sterling bonds, CDS indices would widen sharply on Brexit, says Citi

By Dan Alderson
21 Jun 2016

A vote for the UK to leave the European Union next week could widen the performance rift between sterling and euro bonds and send European credit default swap indices to some of their widest levels this year, Citigroup predicts.

Citi credit strategists estimate that the iTraxx Crossover Series 25 index will trade inside 300bp, if the result of the June 23 referendum is a clear vote for the UK to remain in the EU. But they believe Crossover could reach 460bp in a Leave scenario. The index ...

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