Market Overview

US stocks are trading higher Tuesday as investors look through another sticky inflation release and instead remain focused on VIX volatility and a welcome relief in Bank sector stocks, with the SPDR...

If a couple of regional banks were so bad at managing their interest rate risk and deposit outflow risk to blow up in a few hours, how can we really be sure other banks won’t face similar...

With the collapse of Silicon Valley Bank, questions of potential “bank runs” spread among regional banks.“Bank runs” are problematic in today’s financial system due to...

SVB reverberations continue. In the US, the FRA/OIS spread is at a tipping point and needs to calm to help generate wider calm. US financial conditions have tightened considerably as a consequence of...

There’s always a new one lurking. It’s the nature of the beast. Banking is inherently unstable. Most of the time that’s not obvious and banking operations run smoothly. But panics...

SVB failed due to higher interest rates and a liquidity problem Despite the failure, today's situation is different from 2008, with lower bank leverage, safer investments, and Fed support This, in...

The dramatic shift in expectations for Fed policy is a potent shock with reverberations throughout the capital markets.  The business press was full of accounts putting the nearly 50 bp decline...

Understandably, a lot of inexperienced traders might struggle to survive, let alone thrive, in this market environment. But paradoxically, it is exactly times like now when some experienced traders...

Some calm appears to have returned to financial markets in early trade in Europe this morning but how long will it last?While everyone will be hoping that the turmoil that swept through markets since...

Beyond contagion risks in the banking system, the focus is now squarely on spillovers in the form of economic growth risks, which could wreak havoc on the global economy as lenders tighten loan...

In this piece, we’re going to run through some of this week’s important data releases and give our initial thoughts on the recent collapse of Silicon Valley Bank.Let’s dive right...

What will happen to markets in case Feb CPI rises well over expectations? What would happen if inflation undershot expectations of 6.0% y/y and 0.4% m/m? The SVB implosion has eliminated the odds of a...

The policy measures jointly announced by the Treasury, FDIC and Federal Reserve to help deposit migration within the banking system are likely quelling some concerns around a broader contagion (at...

The high-profile collapse of Silicon Valley Bank last week is a story about bad debt, just not in the way most people think. Bank executives didn't issue too many loans to poor quality borrowers. They...