Why Europe is wrong to ignore the threat of Brexit
04 March 2016
I’ve been struck during my travels in Continental Europe in recent days how little attention is being paid by investors there to the prospect of the United Kingdom voting to leave the European Union (EU). Many European investors seem to think this so-called “Brexit” decision, scheduled to take place on June 23 this year, is an issue that will only affect the United Kingdom. We at Franklin Templeton Fixed Income Group think they’re mistaken and that Brexit has significant implications for investment markets in Europe as a whole. Moreover, we think the possibility of a vote to leave is underpriced in the market currently.