Let’s begin with more “unintended consequences” of Brexit as the UK property funds continue to hound the financial sector.
1. Some $23 billion worth of property assets is now frozen after seven funds put up gates.
2. Moreover, certain funds are sharply marking down their portfolios. Welcome to “dilution adjustment” as Aberdeen cuts its property fund NAV by 17% and suspends redemptions.
3. Traded UK property assets such as this ETF (below) have tumbled. Could this shift out of British real estate spill over into other frothy property markets? Hong Kong, Syndey, Toronto, San Francisco?
4. Firms who suspend redemptions see their shares take a hit. Please, please don’t dump my stock …
Source: The Telegraph
5. European banks remain under pressure.
6. Deutsche Bank shares continue with their daily decline while CDS spreads widen.
7. Italian banks are down another 2% on Wednesday and 56% year-to-date. Brutal.NFTRH Premium for an in-depth weekly market report, interim updates and NFTRH+ chart and trade ideas; or the free eLetter for an introduction to our work. You can also keep up to date with plenty of actionable public content at NFTRH.com. Or follow via Twitter @BiiwiiNFTRH, StockTwits or RSS. Also check out the quality market writers at Biiwii.com.