There is one year left until Brexit. Investors seem to have adjusted to the reality of the U.K. leaving the European Union. But a key barometer used to measure the stress of Brexit isn’t telling the whole story.
On the evening of March 29, 2019, the deadline embedded in the Brexit talks, the U.K. will be out of the EU. Based on progress in negotiations, the initial exit looks likely to be largely in name only. A transition period extending until the end of 2020 should keep trading relations intact and give both sides time...