The risk-off sentiment following the British Brexit vote in late June continued into the first week of July, with bond prices moving higher and equity and preferred share prices under some downward pressure. Concerns about the British referendum subsequently faded though, with growing expectations that Britain would delay triggering its departure decision until next year as well as the realization that the impact was going to be relatively minor everywhere except in the U.K. As a result, over the next few weeks, the prices of so-called risky assets surged higher. The upward move appeared, in part, to be a relief rally. For preferred shares, a lack of new supply combined with continuing demand for yield resulted in very good gains. The S&P/TSX Preferred Share Index returned 3.61% in July, which meant that its year-to-date return finally climbed back into positive territory at +0.57%.