Corporate Bond Issuers Step Up Efforts to Protect Themselves Against Brexit Risks

The video discusses how companies are increasingly listing Brexit-related risks, such as access to EU research budgets and airspace. It highlights the trend of companies adding clauses to bonds allowing jurisdiction changes away from the UK, reflecting concerns about the financial landscape post-Brexit. Investors are worried about losing English law protections, leading to unpredictable actions regarding debts.

What is one of the risks Cambridge University listed due to Brexit?

• Loss of access to EU research budgets

• Increase in EU-based student applications

• Expansion of EU airspace access

• Reduction in corporate taxes

Why are companies adding clauses to switch governing jurisdictions in bond agreements?

• To comply with EU regulations

• To attract more investors

• To avoid Brexit-related uncertainties

• To increase bond value

What is a potential consequence of Brexit on the financial capital of Europe?

• It will merge with the US market

• It will weaken

• It will remain unchanged

• It will become stronger

What concern do investors have regarding changes in governing law for bank capital notes?

• Unpredictable actions on their debts

• More stringent regulations

• Increased bond interest rates

• Higher investment returns

What specific action did a Portuguese bank take in response to Brexit?

• Changed its headquarters to the UK

• Increased its bond interest rates

• Issued bonds with English law

• Issued bonds with precise language for law change