The SVB collapse: Reverberations and reactions

Silicon Valley Bank’s stunning demise sent shock waves across the banking sector as well as the broader financial markets. The Fed’s overaggressive rate hikes (the  largest percent increase in history in a short period of time), combined with some banks buying treasuries at low rates prior to those rate hikes, has led to large unrealized losses in those treasuries.  

While we believe both the Fed and the banks have responsibility here, we also believe this is not like 2008 and in fact is creating some attractive opportunities that do not come along often. The overall market has sold off dramatically, even in areas that have nothing to do with this issue.

We hope you will find this Market Update informative, especially in light of the recent news.

If you have any questions or need further guidance, please do not hesitate to contact us.