Nomura's Hodges: Credit market will shut down ahead of EU vote leading to 'tidal wave' of new issuance

Will end up with a 'very expensive' market

Dickie Hodges, manager of the $100m Nomura Global Dynamic Bond fund, has said he believes credit markets will completely shut down in the week prior to the EU referendum on 23 June, before facing a "phenomenal wave of new issuance" the week after.

The manager (pictured) said markets have already become quieter as companies hold off attempting to re-finance while there is still uncertainty surrounding the Brexit vote. "I think markets will almost completely shut down the week prior to the vote due to the uncertainty. I think there will be a complete withdrawal of liquidity and we have already started to see that deterioration," he said. Brexit fears weigh as overseas perception of UK plummets "However, there will then be a wave of new issuance a week after the vote. Brexit is the last true uncertainty that markets face in 201...