SEARCH
The impact of the UK’s vote to leave the European Union will not cause a Lehman Brothers-like crisis, according to Principal Global Investors, although Brexit-related uncertainty is set to continue.
Global growth is likely to slow down as “Euro businesses wait for better clarity before investing”, said Principal’s chief global economist, Bob Baur, who noted that a number of British real estate funds had halted redemptions.
Regardless, Mr Baur says the impact will not be as severe as the collapse of Lehman Brothers in 2008.
“While the political crisis of Brexit will hang around for a long time, we think the global economy can weather this storm as it has several others, including the global financial crisis,” he said.
Mr Baur said that lower interest rates, no indication of systemic issues in the equity and fixed-income markets, and less leveraging on the part of the banks mean the current situation is fundamentally different.
Read more:
Credit rating downgrade no disaster: UBS
Australia insulated from Italian bank risk
UniSuper points to investment missteps
IOOF dodges enforceable undertaking
New executive for LaSalle Investment Management
AGL is a failure of stewardship, according to the CEO of Climate Energy Finance. ...
Vanguard is terminating its multi-factor active ETF. ...
BetaShares has announced the launch of new ETFs to offer investors access to two of the world’s most significant alternative energy sourc...