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Brexit vote won’t favor risk assets: Gross

Sri Lanka-Markets-Analysts

Jun 13, 2016 (LBO) - Bill Gross, who runs the 1.
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4 billion dollar Janus Global Unconstrained Bond Fund, says the possibility of Brexit is another element that does not favor risk assets.
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"Risk assets are dependent upon growth, they're dependent upon — even in the high-yield market — on relative stability and to the extent from a geopolitical standpoint that growth is threatened then risk assets are at risk," he told CNBC. As one outcome becomes more probable than the other, then money is moved around quickly and causes volatility and instability, added Gross.
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British citizens are set to cast their vote on June 23 in a EU referendum to decide on whether the UK should stay in or leave the 28-member bloc. The market is at risk not necessarily because that nation is exiting but because others may follow, Gross said.
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"France ... or Italy might suddenly decide their own domestic internal policies should be favored versus that of a larger EU family," Gross said in an interview with CNBC's "Power Lunch." "If 'Brexit' wins, then fear gets into the marketplace and positions in terms of expectations for growth — anemic as it is in euroland — become threatened." U.S. stocks fell in midday trading Friday after a poll by London newspaper The Independent showed 55 percent of British citizens are in favor of leaving the EU. The pound fell against the euro, as well as against the dollar
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