Brexit Biggest Event on Near-Term Horizon, Says Ruane
European equities could lose about a quarter of their value in the immediate aftermath of a U.K. secession from the European Union, a study testing the effects of Brexit showed. Risk-modeling firm Axioma Inc. found that stocks would take the hardest hit among asset classes when it simulated the effects of a “Leave” vote on a hypothetical portfolio composed of 54 percent bonds, 41 percent shares and the rest in alternative investments. Pound-denominated investments would slump 10 percent, more than those in euros, the model showed. Equities have remained relatively calm in the run-up to the June 23 referendum, even as volatility for Britain’s currency has surged to its highest level since 2009. Investec Wealth Head of Fixed Income Darren Ruane discusses with "On the Move" hosts Guy Johnson in London and Matt Miller in Berlin.