Is the Sentiment towards U.S. Tech Stocks Similar During Banking Crisis and Lockdown?
As banks began to fail in the United States, bond positioning changed. Inflation has been pushed aside as we head towards a recession. Yields plummeted and higher interest rates were no longer priced in. Meanwhile, stock markets are rising. The Nasdaq 100 Index has risen even as bank stress is expected to curb lending and […]
According to sources, First Republic Bank is considering various alternatives, including a potential sale.
San Francisco-based financial institutionFirst Republic Bank is exploring strategic options, including the sale of itself. This was confirmed by several people familiar with the matter. Ratings agencies S&P Global Ratings and Fitch Ratings downgraded First Republic Bank to junk. The bank, which is also considering options to boost liquidity, is expected to attract interest from […]
Chairman states that Credit S’ bond guarantee expenses nearing 1,000bp and rules out governmental assistance.
Credit Suisse Group AG’s one-year bond default guarantee fee has approached 1,000 basis points (bp = 0.01%). This usually indicates a serious investor concern. A one-year credit default swap (CDS) backing Credit Suisse bonds was quoted at 835.9 basis points (bp = 0.01%) at the close of trading on Tuesday, according to CMAQ data. Other […]
Report suggests US Fed mulls stricter regulations for midsize banks post-SVB bankruptcy.
In response to the failure of Silicon Valley Bank (SVB), the US Federal Reserve Board (FRB) tightened capital and liquidity requirements for medium-sized banks and strengthened annual bank stress tests (prudential examination). We are considering measures for The Wall Street Journal (WSJ) reported, citing an anonymous person familiar with the matter. Plans under consideration could […]
This Month Sees Continued Outflow of Client Funds from Credit S’ as Liquidity Buffer is Decreased.
Credit Suisse Group AG said it has launched a large-scale campaign to win back customers’ deposits, but the outflows have continued this month. The bank saw an unprecedented outflow of client money in early October last year and has yet to reverse the trend as of this month, according to its annual report released Wednesday. […]
Credit Suisse ‘significant weaknesses’ in internal control of financial reporting – annual report
swiss bankCredit Suisse Group AG said on Thursday it would adopt a new plan to remedy “substantial weaknesses” in its financial reporting and control procedures over the past two years. The bank was reviewing its financial reports after a complaint from the U.S. Securities and Exchange Commission (SEC) last week. In its annual report released […]
2-Year U.S. Treasury yields drop sharply since Volcker era after bank failures
The volatility in short-term U.S. short-term interest rates on Thursday was unlike anything seen in the past 40 years, including during the 2008 financial crisis and the 9/11 attacks. Two-year U.S. Treasury yields fell about 61 basis points (bp, 1 bp = 0.01%) on the day. It was the biggest one-day decline since the early […]
Ukraine: Xi, Zelensky to meet, Russian arms exports down
Chinese President Xi Jinping and Ukrainian President Zelensky meet via video for first time since Russian invasionIt’s a plan. The Wall Street Journal reported that Xi is expected to visit Moscow next week and talks with Zelensky will probably come later. China and Russia have yet to formally confirm Mr Xi’s visit to Russia, but […]
[Column]Revival of the Fed’s reversal scenario due to bank failures – Authors
The world financial system is in turmoil. The US Silicon Valley Bank (SVB) has gone bankrupt. Washington Mutual was forced to file for bankruptcy in the wake of the 2008 collapse of Lehman Brothers, making it the largest failure of a U.S. financial institution since then. New York’s Signature Bank was also forced to shut […]
10-Year U.S. Bond Yield May Rise Towards 4% Again – SVB Bailout Facilitates Safety Demand
10-year U.S. Treasury yields could rise again toward 4% as demand for safe-haven assets recedes as U.S. government efforts to fend off contagion risks from the Silicon Valley Bank (SVB) collapse. Mitsubishi UFJ Morgan Stanley Securities and RBC Capital Markets said this. Treasuries could lose their biggest two-day rally since the early days of the […]