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 […]
The global financial markets are experiencing volatility as investors try to gauge the future path of monetary policy. The US Federal Reserve has said it may hike interest rates sooner than expected to combat rising inflation, which could have an impact on stock and bond markets. The Fed has also been discussing the possibility of […]
Global markets had a mixed week, as concerns over rising interest rates and inflation continued to weigh on investor sentiment. Gold prices edged up as the dollar weakened due to rate hike worries, capping off a choppy trading week for the precious metal. The price of gold has been volatile in recent weeks as investors […]
Are you curious about what a recession is, how it happens, and what its effects are on the financial markets? A recession is a period of economic decline, and its causes can vary from tight monetary policy to geopolitical events. However, the impact of a recession can be widespread, including increased poverty rates and reduced […]
