Clinton would become President under a cloud given the FBI's recent announcement - BBH

Research Team at BBH, suggests that they understand that Clinton would become President under a cloud given the FBI's recent announcement (which has now been reversed) and her high unfavorable ratings.

Key Quotes

“If the Democrats fail to secure a Senate majority, Clinton will have an even more difficult time of things.  On the other hand, Obama's moderate nomination for the Supreme Court may be more appealing to the lame duck session than a potential Clinton nominee.  The same is true of the two vacancies on the Board of Governors of the Federal Reserve.  At the same time, the Republican-dominated Congress will be loath to make any last minute concessions to Obama, having fought tooth and nail for nearly his entire two terms.  This includes at Trans-Pacific Partnership trade agreement. 

As a Senator and Secretary of State, Clinton was able to work across the aisle with Republicans.  A Democrat Senate, and ambitions of the Republican leadership in the House (assuming that does not change), may boost bipartisan opportunities.  A Democrat sweep of both chambers is not particularly likely.  In such a scenario, the key driver may be bonds, which we suspect investors would sell in a bearish steepening.  In the current environment, it likely would be dollar-friendly.”