Global bank stocks under pressure on Silicon Valley Bank fallout

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Europe’s bank shares suffered their biggest fall in over a year as global efforts to limit the fallout from the collapse of SVB failed to ease fears.

London, Sydney — Europe's bank shares suffered their biggest fall in over a year and bond markets saw a gigantic repricing of rate hike bets on Monday as global efforts to limit the fallout from the collapse of Silicon Valley Bank failed to ease fears.

The Fed also said it would make additional funding available through a new “Bank Term Funding Program”, which would offer loans up to one year to depository institutions, backed by Treasuries and other assets these institutions hold. Analysts noted that, importantly, the Fed would accept collateral at par rather than marking to market, allowing banks to borrow funds without having to sell assets at a loss.

The implied peak for rates came all the way down to 5.08%, from 5.69% last Wednesday, and markets were back to pricing in rate cuts by the end of the year.

 

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UK races to minimise damage from Silicon Valley Bank collapse | BusinessBritish finance minister Jeremy Hunt said on Sunday he was working with Prime Minister Rishi Sunak and Bank of England Governor Andrew Bailey to 'avoid or minimise damage' resulting from the chaos engulfing the UK arm of Silicon Valley Bank.
Source: News24 - 🏆 4. / 80 Read more »