Thu, Aug 6, 2020
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other voices: DBRS: No-deal Brexit increases risk of breakup of the UK

Thursday, September 05, 2019

By: Sovereigns

DBRS considers that diverging views on Brexit among citizens in the UK could inadvertently lead to the breakup of the Union. DBRS reviews the implications of no-deal scenarios and their potential impact on the unity of the United Kingdom.

At one extreme is a "severe" hard Brexit whereby the UK crashes out of the EU permanently with no airbags or restraints on its impact. DBRS concludes that such a Brexit could quickly change the support for Scottish independence and even over time the support for the unification of Ireland, increasing the breakup risk of the UK. These considerations are exacerbated by a weakening economic environment that intensifies divisions within the UK.

No-deal scenarios range from a technical no-deal Brexit that delivers on the referendum decision to leave the EU, followed by an almost immediate agreement on key transition terms (i.e., a "temporary" hard Brexit). This outcome could deliver Brexit and re-orient the political debate to the future relationship with swift agreement on both sides somewhat limiting the chaos. On the other hand, a deep and prolonged period of disruption and serious fallout with the EU (i.e., a "severe" hard Brexit) would likely have much more negative consequences, including a potential dismantling of the Union.

DBRS expects that a "severe" no-deal Brexit would be politically and economically painful and would threaten the integrity of the Union. DBRS views a breakup of the UK as credit neg......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing: Yield stocks are the way to go for this Australian hedge fund, Tech stock rally is far from repeating the 1990s dot-com bubble, SunTrust says, Stocks now in 'the painful stage' before a more balanced bull market emerges, Morgan Stanley chief US equity strategist says[more]

    Yield stocks are the way to go for this Australian hedge fund From Bloomberg: Equities that offer attractive yields are the last remaining place investors can get returns in a world of zero interest rates, according to Kardinia Capital. The Sydney-based absolute return manager of one

  2. Study: Small endowments and foundations fall behind in the pandemic, Covid-19 could be trigger for widespread mandate losses[more]

    Small endowments and foundations fall behind in the pandemic From Institutional Investor: Bigger allocations to alternative assets may be benefiting their larger peers - for now. Large endowments and foundations in the U.S. beat smaller ones in the first quarter, reversing last year's per

  3. GCM Grosvenor to merge with Cantor Fitzgerald SPAC, to go public[more]

    Laxman Pai, Opalesque Asia: GCM Grosvenor, a global alternative asset management solutions provider with approximately $57 billion in assets under management, is planning to go public by merging with a special purpose acquisition company backed by the financial-services firm Cantor Fitzgerald in

  4. Ocean Avenue Capital Partners wraps up the fourth fund at $350m[more]

    Laxman Pai, Opalesque Asia: California-based lower-middle market private equity firm Ocean Avenue Capital Partners (OACP) has closed its fourth fund at a hard cap of $350 million, beating its $300 million target. OACP, which manages approximately $1.3 billion of capital, expects that represe

  5. New Launches: Hedge-fund launches pick up despite Covid-19 pandemic, Taconic launches new credit fund, Deerfield raises another $2.5bn as investors flock to health care investments, Blackstone's second fund targeting GP stakes raises $3.5bn so far, Morgan Stanley IM targets greener recovery with Euro sustainable funds, UCL hits $131m first close for sophomore venture capital fund, Fulcrum launches climate change fund, Blackbird raises $356m fund, Crypto venture fund raises $110m from universities, Prime Capital launches Liquid Alternatives Credit fund of funds[more]

    Hedge-fund launches pick up despite Covid-19 pandemic From WSJ: Raising money for a new hedge fund long was contingent on a host of in-person meetings. But a slate of managers are launching sizable startup funds despite complications wrought by the new coronavirus. Hedge-fund man