This Market Gauge Is Showing Rising ‘Brexit’ Fears

This Market Gauge Is Showing Rising ‘Brexit’ Fears

12 April 2016, 09:47
Francis Dogbe
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Worries over whether Great Britain will leave the European Union are showing up in unlikely pockets of the financial markets. One of them is the difference between the London Interbank Offered Rate and the overnight indexed swap rate in the U.K. Measures of the gauge, known as the Libor-OIS spread, spiked prior to the financial crisis. Now, uncertainty about the impact of a “Brexit” are pushing the spread up in the U.K., according to TD Securities. The UK will vote in June on whether to to stay in the European Union. With British voters divided on the decision, the possibility of an exit has become a ... READ MORE
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