Three Minute Market Insight

June 26th, 2016: In this market insight, we examine how the Brexit has changed the face of risk-on assets. Specifically, since the Brexit on Friday, we've seen UK equity markets and Eurozone equity markets exhibit significantly more tail risk and contribution to extreme loss, with down market sensitivity, e.g. Beta, of well over 2.0. Furthermore, foreign fixed income -- both USD and local currency denominated -- have increased in their correlation to risk-on assets, failing to provide the same level of downside protection as when the Federal Reserve Raised interest rates back in December.