Shock Brexit obliterates remaining certainty in FIG

Euro SOS 230x150
By Tyler Davies
24 Jun 2016

European bank debt was thrashed in the wake of the UK's vote to leave the European Union on Friday morning. And though the panic hasn't matched that seen in February, when concerns on AT1 coupon payments triggered a selloff, the worst may be yet to come as markets face unprecedented governmental change.

“I’m lost for words,” said one FIG DCM banker, describing “one-way traffic” in the credit markets and likening the gravity of the situation to the collapse of Lehman Brothers in 2008.

Initial market moves found senior bonds trading 25bp-75bp wider, depending on the name and the jurisdiction. ...

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