Goldman: Markets Biggest Fear Is Neither Trump, Nor Sanders, Nor The Fed … It's Brexit

As the market prices in Brexit volatility, where are the opportunities for traders? Shortly after an Investec research report noted that the perception regarding a Brexit volatility and a mean reversion trade might drive reality, and recommended buying a U.K. bank that was not Barclays, Goldman Sachs has a different take. Looking at the underlying market structure behind Brexit volatility, the bank’s option research team note a term structure unfavorable to near-term long VIX futures exposure. Different markets are treating Brexit volatility with variable degrees of pricing. Brexit volatility puts “kink” in term structure As the June 23rd Brexit moves…