One of the most preferred trades for a possible Brexit seems to be buying duration (the most popular trade appears to be selling sterling although this involves dipping into the FX market which can be a testing experience). In fact, this seems to be one of the most popular trades of the moment as uncertainty prevails in the financial world and global economy.
Diversifying For Brexit – FactSet
However, Morgan Stanley believes a better trade for a Brexit scenario is selling mortgages vs. Treasuries. Morgan Stanley’s June 22 Agency MBS Brief research note lays out the details of the trade.
Trade Brexit With Short MBS
At present (June 22) thanks to the fact that the Federal...

