​Weekly: Brexit Poll Sees VIX Jump, Payer Spreads Lack Demand

The VIX jumped Friday thanks to a recent poll released showing a leave vote ahead in this month’s U.K. Brexit referendum. That’s the first positive result the leave campaign’s seen since this whole issue started. The increasing uncertainty around the vote has seen further hedging flows, with British banking stock and the euro ETF targeted this week. Meanwhile in Europe, investors are largely snubbing payer spreads in Sept-Dec maturities despite consensus that CDS indices will likely experience widening over the summer as they increasingly become macro indicators for market participants and central bankers. One firm noted the strike of the ‘European Central Bank Put’ is likely around 105bps, meaning investors should forgo being short the market at levels above 100-105bps.