“There are decades where nothing happens; and there are weeks where decades happen” Vladimir LeninI was visiting relatives in Kuching, Sarawak when the multiple news reports of American bank failures hit the screens and home televisions the world over. The speed and ferocity of the downfall of Silicon Valley Bank (SVB) and the subsequent response from bigger US institutions to rescue First Republic Bank all unfolded within a few days. To add on to the seemingly never-ending list of worries, investors were also hit with news of Credit Suisse’s rescue and the unexpected wipe-out of its AT1 debt holders last week. There are weeks where decades happen. Admittedly, it feels reminiscent of the 2008 Global Financial Crisis (GFC) in some aspect…
Volatility Is An Instrument of Truth
About six months ago I wrote:“because interest rates are a blunt tool, this sets the stage for a potential fallout that...