Investing In Europe Amid Brexit Uncertainty by John Taylor & Tawhid Ali, Alliance Bernstein
European markets are still digesting the shock result of the UK’s Brexit referendum. How should investors in European fixed income and equity markets navigate the turmoil?
In fixed income markets, the Brexit vote and resulting spike in investor risk aversion spurred a sharp sell-off in Europe’s corporate bond markets. This resulted in higher yields and wider credit spreads—with high-yield bonds selling off more sharply than their investment grade c