AVIOR INSIGHTS – 5 Insights for Navigating Banking Crises in Q2 and Beyond
In times of market uncertainty, investors often turn to sayings such as "those who fail to learn from history are doomed to repeat it" and "history never repeats itself, but it does often rhyme." When it comes to the day-to-day headlines, both quotes are relevant given the long history of banking crises and market swings. This is because investors must deal with innumerable challenges over the course of their financial lives....
AVIOR INSIGHTS – Why the Fed Raised Rates Amid a Banking Crisis
In this market environment, investors have had no choice but to balance a number of difficult issues related to the tightening of financial conditions. These have ranged from rising rates to a slowing economy, and a housing market downturn to the current banking crisis. While each of these issues has its own unique circumstances, it's also important to recognize the common underlying causes. This is especially important as the situation...
AVIOR INSIGHTS – What Ongoing Banking Turmoil and Market Pullbacks Mean for Investors
The banking crisis that began in the U.S. has now spread to Europe. Recent concerns over the solvency of Credit Suisse, Switzerland's second largest "global systemically important bank" (G-SIB), was due in no small part to the runs on U.S. banks. What made Credit Suisse vulnerable was that it had been plagued by reputational and financial difficulties over the past decade including problems with its financial reporting, exposure to the...
AVIOR INSIGHTS – Navigating Bank Failures, Fed Rate Hikes, and Risks to the Financial System
The recent failure of three U.S. banks has raised concerns over the economy and financial system. The situation is still evolving and there is plenty of speculation as to what might come next. One recent development is that government officials from the Treasury, Federal Reserve, and FDIC have announced that depositors will be made whole in an effort to backstop the system and restore confidence. This crisis has already created...