Last quarter, markets grappled with the unintended consequences of pandemic-related decisions, including high inflation and an unanticipated banking crisis. This crisis resulted from aggressive lending, a two-tiered stress test system, and a sharp rise in interest rates impacting bond prices. Inflation remains persistently high, and the likelihood of a recession has increased. Despite these concerns, […]
Last weekend, we conducted another online workshop on the basics of trading and investing, and since it is a SkillsFuture Credit-Eligible Course, participants could use their SkillsFuture credits to pay for the course instead of cash. Thanks for the support! During the 9 hours of training, participants learnt portfolio strategies to build and protect their […]
Last week saw an array of significant events unfold in the global banking and financial sectors, with concerns over Deutsche Bank, rising inflation, and China’s economic recovery dominating headlines. Deutsche Bank’s shares slid 8% after a sudden spike in default insurance costs raised concerns among investors. While analysts insisted that Deutsche Bank was not the […]
This week, unprecedented disruptions occurred in global markets, with major sovereign bond markets trading like meme stocks. The US Treasury experienced a rare 12-sigma move, while German Bunds had a record-breaking single-day move. Volatility indicators also had their largest moves since the COVID shock. This turmoil was triggered by a bank run on Silicon Valley […]
Silicon Valley Bank’s recent troubles have highlighted the risks posed by exposure to mortgage-backed securities. The bank purchased over $80 billion of these securities with deposits, but as interest rates rose, the value of the securities plummeted. The bank recently announced it had sold $21 billion of its Available For Sale securities at a $1.8 […]
