How Bond Issuers Are Bracing for Brexit

The video discusses the impact of Brexit on legal clauses in corporate bonds, highlighting how companies are including risk factors to warn investors. It examines the appetite for sterling bonds, noting that interest hasn't significantly declined despite Brexit. The video also explores how banks are changing governing laws in bond documents to maintain their status as capital instruments, with concerns about the objectivity of EU laws compared to English law.

What is one of the main concerns for Cambridge University regarding Brexit?

• Loss of EU research funding

• Decrease in faculty members

• Expansion of campus facilities

• Increase in tuition fees

How has the Bank of England influenced the sterling bond market?

• By increasing taxes on bonds

• By restricting foreign investments

• By reducing interest rates

• By buying up corporate bonds

What is a reason banks are including clauses to change governing laws in bond documents?

• To increase bond interest rates

• To maintain bonds as capital instruments

• To attract more investors

• To comply with new EU regulations

Which bank is mentioned as having included specific language about Brexit in its bond documents?

• Barclays

• HSBC

• Deutsche Bank

• Novo Banco

What is a concern for investors regarding the change in governing laws post-Brexit?

• More stringent credit checks

• Increased bond maturity periods

• Less objective laws in EU jurisdictions

• Higher transaction fees