Brexit May Risk No-Deal Bond Market as Uncertainty Lingers On
- Unclear trade ties deter corporate investments and debt sales
- U.K. leaving EU without agreement may cause financial turmoil
This article is for subscribers only.
Europe’s bond market may face an early year-end shutdown as Brexit risks cloud the outlook for borrowers and investors.
Companies may hold off issuing notes, particularly in sterling, as uncertainty about the U.K.’s future trading relations with the European Union forces them to delay decisions about new plants and equipment. Investors may also be reluctant to deploy funds if the U.K. fails to reach a divorce agreement due to the risk of an economic slowdown or potential turmoil in bond and foreign-exchange markets.