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

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