SVB bankruptcy: a new paradigm in monetary policy?


17 Mar

SVB bankruptcy: a new paradigm in monetary policy?

The bankruptcy of the SVB has various consequences. The systemic risk seems to be ruled out by central banks. CS is a global systemic bank. SNB support was expected. A likely new paradigm for rates.

Key points

  • Silicon Valley Bank (SVB) bankruptcy will affect US monetary policy
  • The next US rate hike could be the last
  • European Central Bank stays the course and reassures
  • Systemic risk ruled out by central banks
  • CS’s solvency seems assured despite its performance and repositioning strategy
  • FINMA and SNB reassure and support CS
  • A new, more favorable paradigm for interest rates is taking hold in the short term