Europe’s Credit Markets React To Brexit – $11 Trillion Of Negative Yield

Europe’s Credit Markets React To Brexit

The knee-jerk reaction to Brexit in the credit markets is similar to that as seen in the equity markets but has been exacerbated by illiquidity and rising levels of bank stress.

China Credit Growth Slows During May

Bank of America credit analyst Barnaby Martin points out that since Thursday, Euro Investment Grade spreads are 14 basis points wider, Sterling Investment Grade spreads are 18 bps wider, and EUR high-yield spreads are 65 bps higher. Most of the reactions were in line with the bank’s initial knee-jerk reaction forecasts with the exception of Sterling Credit Spreads.
Indeed, Bank of America was initially predicting a widening of spreads of 30 bps to 40 bps in...