Assessing the banking turmoil: Is the market panic an overreaction or justified?

FX Talk - an Ebury podcast

Content provided by Ebury FX Talk. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Ebury FX Talk or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

1y ago 25:41

MP3•Episode home

Fetch error

Hmmm there seems to be a problem fetching this series right now. Last successful fetch was on April 29, 2024 12:51 (1M ago)

What now? This series will be checked again in the next day. If you believe it should be working, please verify the publisher's feed link below is valid and includes actual episode links. You can contact support to request the feed be immediately fetched.

In this episode, we discuss the recent banking turmoil, specifically the failure of SVB and its impact on the market. SVB's sensitivity to interest rate risk and its investment in long-duration bonds led to a significant mark-to-market hole in its balance sheet, causing depositors and investors to withdraw their funds en masse. This panic has contributed to the troubles faced by Credit Suisse, but we believe these failures are one-offs rather than systemic issues. While the market has stabilized, we must closely monitor the situation. In terms of central bank rate hikes, there is a delicate balancing act between banking uncertainty and inflation. Markets are only pricing in one more 25bp move from the Fed, but we believe the ECB and BoE still have room to go.
We’d like to hear from you! Provide us with feedback so we can improve the podcast: https://linktr.ee/fxtalk

Liked this show? Please leave us a review here – even one sentence helps!

88 episodes

#Trading #Business News #Business #News #Ebury FX Talk #Forex #Financial Markets #Finance #Currencies #Foreign Exchanges #Hedge #Payments