MARKET INSIGHTS
01/30/2019
Brextension
Just what is the probability of Hard Brexit, the scenario that sees Britain crashing out of the European Union without a deal? The probability of it happening by March 29, the deadline for the two-year negotiation saga, is low, especially after the House of Commons’ late-January vote to send Prime Minister Theresa May back to Brussels for another round of negotiations with European Union counterparts. However, we think the market needs to appreciate another contingency: Brextension. This is the scenario of kicking the can down the road, driven by flighty markets and fear of the unknown.