European capital markets have been plunged into deep uncertainty after the UK voted to leave the European Union, with bankers and investors struggling to digest what the unprecedented decision will mean.
Thousands of bankers in Britain are fretting about their job security as the industry faces upheaval in trading operations and regulations in the wake of Britain’s decision to quit the European Union.
UK and peripheral bank bonds were hit hard in secondary markets on Friday following Britain’s vote to leave the European Union.
The UK’s vote to leave the European Union is unlikely to give banks the bonfire of red tape long promised by many campaigners against EU rules and regulations.
Gold jumped as much as 8% on Friday, hitting a two-year high of US$1,358 an ounce as investors flooded to the world’s safe-haven asset in response to the UK’s vote to cut its ties with the European Union.
A mysterious buyer is causing a stir in the US leveraged loan market.
Holders of Oi’s credit default swaps will be among the few investors cheering its bankruptcy filing, particularly as certain buyers were due to see their protection expire just hours after the Brazilian telecoms company filed on Monday.
Italian rescue fund Atlante will take a substantial hit on its €1bn purchase of Veneto Banca shares even if the struggling bank is split into good and bad parts in an effort to find a buyer.
Twilio’s near doubling on its debut last week proved US IPO investors do retain an appetite for large non-profitable tech companies, or so-called “unicorns”, stirring hopes of a long-awaited rebound in sector deal flow.
Extensive lending by China to countries in emerging markets looks set to complicate the next wave of sovereign debt restructuring, particularly as the country has yet to join the Paris Club of official sector creditors.