![]() ![]() Global bank credit risk is on the rise too… No extreme moves in the TED spread yet (although its back YTD highs as systemic risk increases)… Notably, Specs are practically still at their most short ever in bonds – so this week’s plunge in yields was hurting a lot of people… The 10Y yield puked back to 3.70% – one month lows – after testing 4.00% for two weeks… The 2Y Yield is back below the Fed Funds rate once again, and will likely be considerably further below it after the next Fed meeting… The 2Y yield is down over 50bps in the last two days, the biggest 2-day drop since Lehman (Sept 2008)… On the week, Treasuries saw a wild ride but yields ended dramatically lower across the curve with the shorter-end outperforming (down almost 30bps on the week)… VIX exploded higher on the day, back above 28 and recoupling with equity weakness… Unsurprisingly, financials were the week’s biggest sector laggards but all were red on the week… Today’s ugliness smashed the S&P 500 and Russell 2000 down to unchanged on the year…Īll the US Majors are now back below their 200DMAs… The Dow has been underwater on the year for over a week and is now down 4% in 2023. The worst week for stocks in 2023… On the week, all the US majors were down hard with Small Caps crashing 9%, S&P, Dow, and Nasdaq over 4% lower… Global USD Liquidity tightest in 2023 (foreigners paying up for USDollars).TED Spread at YTD highs (systemic risk rising).The 18% drop this week was the index’s worst drop since Lehman (Sept 2008)…Īnd as you’ll see below, that started to have some notable impacts on the most arcane of global systemic risk red flag signals… SVB bonds were puking hard and when the FDIC headline hit, the bonds collapsed further…Ī number of small/medium sized banks were clubbed like a baby seal…Īnd the KBW regional bank index crashed (down 9 of the last 10 days and 20% in that period). Things started off badly as SVB crashed 65% in the pre-market before being halted. ![]() SVB’s collapse – the second biggest US bank failure in history – dominated any reaction to this morning’s mixed bag from the BLS (hotter than expected earnings growth, rising unemployment (especially for Latinos), better than expected payrolls gains). Last week we detailed BofA’s Michael Hartnett’s warning that “The Fed will tighten until something breaks”. It’s far longer and more financially intricate than I would usually post but for those with an interest in the subject, it gives an overview of the financial system right now: In the meantime, here is Zero Hedge’s take. Lets just hope my new found friend is wrong. The company still has some money in the account. The investor told her she should get as much money out of the bank as she possibly could, Ms Greenberg said.Īudrey Wu, a Ruth Health co-founder, began making transfers out of the company’s account of different denominations, hoping not to trip up any automated systems that would flag the transactions and potentially delay them.Īs she prepared to carry out the final transfer from the account, SVB’s website crashed and she couldn’t log back in, she said. Ms Greenberg called the investor, who answered the phone out of breath, she said. “It basically just said ‘Things are imploding at SVB, it’s urgent that you get your money out,’” Ms Greenberg said. Here is a section from the Australian today:Īlison Greenberg, co-founder of Los Angeles-based maternity care start-up Ruth Health, was in a meeting Thursday when she got a frantic email from a seed investor. I’ve been wrong about that for well over a decade and will continue to be wrong unless banks start closing their doors (and websites) which almost never happens.Īnyhow, back to the article. I have the crazy notion that real money (the type you can melt down and wear round your neck) is the best. The best financial advice I can give anyone is not to listen to me. Probably rubbish, I thought but I did stop at the ATM on the way home and draw out the maximum I was allowed. He told me that the Government would use this crisis to bring in Central Bank Digital Currencies so that people who don’t have lots of gold and silver would be forced to accept them.
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