By Matt Scuffham
NEW YORK, Sept 30 (Reuters) – Global banks are preparing for the possibility that there will be no clear victor on the night of the U.S. presidential election, a scenario that could spark days or weeks of chaos in global equities and fixed income markets, several bankers said.
Over the past two weeks, major banks have run simulations to ensure they could cope with a spike in market, liquidity and credit risks, and have been advising clients on precautionary hedges and capital raising strategies if a contested election result on Nov. 3 leads funding markets to dry up.
Reuters/Ipsos polls show the contest tightening, with Democratic candidate Joe Biden holding a slim lead over President Donald Trump in three highly competitive states, while three other battlegrounds show a dead heat. A surge in postal ballots driven by pandemic fears is expected to delay some results. L1N2G018J