Banks seem to be weathering the post-Brexit storm, at least in terms of credit.
TheStreet's founder Jim Cramer said the bonds of European banks have been "trading unchanged" throughout the Brexit vote, which could mean that they are in better shape than the falling sock prices would leave investors to believe. This indicates that investors are more confident that the banks can withstand the crisis induced by the U.K.'s decision to leave the European Union.
"The capital situation is not nearly as dire as the common stocks would indicate, which is one of the reasons why I was not as negative as everybody else on Brexit, because I looked at the fixed income side," Cramer said. "The fixed income side is not that bad."
That confidence is shared with Christopher Baker of Morningstar, who wrote that he does not see Brexit causing a long term financial crisis. "We see the U.K. banks as strongly capitalized, with highly liquid, well-funded balance sheets," he wrote.
The European bond market has also awoken. On Wednesday morning, Molson Coors Brewing (TAP) - Get Report announced it would sell euro-denominated bonds. This would be Europe's first corporate debt offering since the volatility hit world markets late last week.
While fixed income may not be taking a hit, stock prices plummeted in the days following Brexit, with European financials hit especially hard.
RBS (RBS) - Get Report rose 2.08% to $4.95 in midday trading on Wednesday. The stock had tumbled more than 8% in the two trading sessions following the U.K's decision to leave the EU and on Monday alone it fell more than 13% after the British government announced that it would abandon plans to sell its stake in the bank.
RBS and Barclay's temporarily suspended trading on Monday due to heavy trading volume.