UK's post-Brexit risk rating as non-EU market will cut investor appetite, Evli says

One of the central consequences of Brexit for a Nordic institutional investor will be the way UK assets will be rated as non-EU assets in solvency calculations after Brexit, argues Tomas Hildebrandt from Evli Bank Plc.

Thomas Hildebrand, senior portfolio manager at Evli Investment Management. | Photo: PR

UK's new place in the league of non-EU states will obviously be considered when considering its risk rating as well as in investors' solvency calculations after Brexit has taken place – in case it is not called off, says Tomas Hildebrandt, senior portfolio manager at Finland's Evli Bank Plc.

"If the UK departs from the EU, and especially if this happens via hard Brexit, it will affect the risk assessment of UK investments. In solvency calculations, risk in non-EU investments is always considered higher than the risk in domestic investments. UK becoming an external market is thus bound to reduce investment appetite for UK assets," Hildebrandt says to AMWatch.

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