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Brexit and Bonds



To Gauge Concerns About Brexit, Look at British Bonds

This brief article discusses how bonds can help one discern whether or not there will be financial trouble as Brexit approaches. I don't understand the intricacies of bond pricing, but I still was able to gleam the broader points. Interestingly, while rates have dropped, the debt is still better rated than German and US alternatives. It's a good sign to see that investors are still interested, albeit perhaps less so. The author provides clear evidence to support that investors aren't panicked.

Before learning about bonds this semester, I didn't think so holistically of them- as signals of investment, financial indicators, and more broad evidence of changing markets. I'm curious to see how the tides will turn as Brexit continues to loom more eminently, and how this will affect the individual communities.

Comments

  1. Alec Ian GershbergJanuary 2, 2019 at 9:55 AM

    Really nice blog! I hope you learned a bit about how to read about public finance from doing it. I certainly appreciated being able to use it to check in and bring issues into class (though I think you might have been absent when I referred to it ;-) Alec

    ReplyDelete

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