The search for Silicon Valley Bank-style portfolios
The demise of Silicon Valley Bank had many causes. But at its heart was the institution’s bond portfolio, which plummeted in value as interest rates rose. Little surprise, then, that analysts and investors are scrambling to locate similar hoards elsewhere. One disconcerting finding lies in Japan. Investment institutions there have accumulated vast stocks of domestic […]
Is the global investment boom turning to bust?
Almost wherever you look, companies seem to be scaling back their ambitions. Meta, the owner of Facebook, recently said that it would invest less in 2023 than previously promised. Disney is slimming its capex plans for this year by a tenth, meaning punier investment in its theme parks. Calavo Growers, a huge producer of avocados […]
SVB and the Only Choice We Have
Yves here. This post makes a point that is glossed over in nearly all mainstream coverage of the collapse of SVB and resulting bailout: the discount window liberalization and the creation of the Bank Term Funding Program together achieve what is just a hair’s breadth away from a full backstop of uninsured deposits, while letting […]
ECB urged to reconsider rate hike plans amid financial market chaos
This article is an on-site version of our Europe Express newsletter. Sign up here to get the newsletter sent straight to your inbox every weekday and Saturday morning Good morning. The EU is to impose curbs on imports of Chinese green technologies, according to a draft of the commission’s Net Zero Industry Act to be […]
Market Talk – March 15, 2023
ASIA: China’s embattled property sector made new progress in its climb out of a months-long slump as official data for January-February on Wednesday showed much narrower declines in home sales, developer investment and construction starts. Home sales by floor area in the first two months of 2023 fell 3.6% from a year earlier, according […]
One of the best ways to figure out what the Fed will do next is to look at regional bank stocks
Federal Reserve Board Chair Jerome Powell speaks at a news conference following a two-day meeting of the Federal Open Market Committee, Wednesday, Sept. 18, 2019, in Washington. Patrick Semansky | AP Markets have changed their mind — again — about what they think the Federal Reserve will do next week regarding interest rates. In a […]
Goldman Sachs cuts GDP forecast because of stress on small banks
Photo illustration, the Silicon Valley Bank logo is visible on a smartphone, with the stock market index in the background on the personal computer on March 14, 2023, in Rome, Italy. Andrea Ronchini | Nurphoto | Getty Images Goldman Sachs on Wednesday lowered its 2023 economic growth forecast, citing a pullback in lending from small- […]
