EU financial regulators highlight risks of a no-deal Brexit and search for yield

The 2019 Autumn ESAs’ report highlights the following risks as potential sources of instability: Uncertainties around the terms of the United Kingdom’s withdrawal from the European Union Persistently low interest rates, which combined with flattening yield curves, put pressure on the profitability and returns of financial institutions, incentivise search-for-yield strategies and increase valuation risks Transition […]