Brexit risks not fully priced in by market

Brexit risks aren't priced in by bond markets and Britain’s exit from the Eu could turn more bitter than expected, Anthony Linehan deputy director at Ireland’s managing debt agency warned on Wednesday.

“In my experience (Brexit) is definitely an area that isn’t priced into markets and it can’t be because nobody knows what it really looks like, even a hard Brexit,” he explained, speaking at a conference in London.

“The one thing that worries use is, it’s just like a divorce, a hard Brexit could turn very bitter and nasty and the reality of it could be very hard for financial markets.”

Britain is one of Ireland’s biggest trading partners, and also the border between Northern Ireland and also the Republic of Ireland is a key issue in Brexit talks.

Linehan asserted changes at the European Central Bank and European Commission constitute political risks, alongside Brexit, that they sees weight loss of the concern than financial risks.

He added the change of ECB chief will not herald a significant shift in policy stance. Mario Draghi’s term as ECB president expires after October.