This just in: CEO Chris Shuba in Financial Planning
Let’s talk about banks!

Fears of Contagion in the Banking Sector Begin to Fade


  • March has been a wild ride in both investor sentiment and market volatility following the collapse of Silicon Valley Bank on March 10th.
  • Following the collapse, expected volatility on Treasury bonds rocketed upwards and sharply adjusted and readjusted in the following days and weeks. A stream of news continued about weakness in other banks, such as First Republic, along with Credit Suisse needing to be rescued by UBS.
  • For much of the rest of the month, investors scrambled to figure out how widespread the risks may be as policymakers rushed to figure out a way to stem fears and further bank runs.
  • Fears have begun to calm down with the limited fallout along with measures taken by regulators to insure deposits, and the expected volatility of Treasury bonds has come down to just a bit above where it was prior to the collapse of SVB.
Source: Helios Quantitative Research, Bloomberg