The Largest Bank Failure Since 2008 | Weekly Round Up
Inflection Point
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Silicon Valley Banks
The expectation of a 50 basis point hike in March went from like 30% to 80%, the terminal rates at 5.8%. So basically anyone that had to buy a large portfolio of fixed income securities and at very, very low rates, they are in trouble right now. If SVB were to go down it would be the second largest failure in US banking history. And we've also seen other signs with the real estate space with the largest REITs having to shut and not allow withdrawals. The next day you're out of business because then you're doing nothing. For sure, this is the beginning of something breaking? Oh, my God! I don't know what's going on
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