Brexit

Sub-Saharan Africa’s credit markets are benefiting from Britain’s decision to leave the EU as well as a more dovish stance from the US Federal Reserve, with bonds rallying to new lows, according to EM specialists.

The outcome of the Brexit referendum has cast a shadow over London’s ability to maintain its status as Europe’s foremost RMB business hub. In this lowdown, GlobalRMB pits three other European capitals – Frankfurt, Luxembourg, and Paris – against the City as the most likely contenders for Europe’s RMB crown.

Latin American borrowers rushed to new issue markets en masse on Wednesday to confirm the thesis that Brexit would have little or no effect on the region, with four issuers pricing bonds and several more likely to do so imminently.

Germany’s financial regulator this week cast further doubt on the planned merger between Deutsche Börse and the London Stock Exchange by objecting to a London headquarters for the group in the wake of the United Kingdom’s vote to leave the European Union.

The SSA market is bouncing back from the Brexit shock more strongly than many bankers anticipated, as the State of Hessen picked up more than triple its minimum €250m target in the first trade to hit screens since the UK vote.

Swiss franc bond bankers expressed concerns this week that the Swiss National Bank will not be able to halt the rising value of the franc in the face of political uncertainty resulting from the result of the UK's referendum on European Union membership.

US brewer Molson Coors didn’t miss a beat as it hopped into the European corporate bond market on Wednesday, sweeping away Brexit-related uncertainty to issue an €800m eight year bond after closing a $5.3bn deal the day before.

Clearing looks set to be one the first areas of London’s dominance as a financial centre to be challenged, following last week’s vote to leave the European Union, with uncertainty over the future of euro business putting pressure on central counterparties based in the UK to relocate their clearing operations elsewhere.

Italy could soon inject much needed capital into its banking sector, but the new measures, planned in the wake of the UK's vote to leave the EU last week, must first get past EU state aid and bail-in laws.

Russia may benefit from UK’s vote to leave the EU as analysts suspect the resolve to maintain sanctions against the former may wain over coming months. Attention is now turning to the US presidential elections in November as another event that may corrode the West’s desire to keep sanctions.

The United Kingdom's vote to leave the European Union sent traders, lawyers and trade associations into overdrive this week as they sought clarity on whether contractual changes for derivatives will be required, what form they would take and how they could be modelled.

Citigroup bulked up parts of its Irish operations last year, in what may have been long term preparation for a potential UK vote to leave the European Union. But other US firms, including Goldman Sachs and Morgan Stanley, continue to rely heavily on their UK subsidiaries to access international markets.