• Investors are back in risk-off mood following bank collapses — although sentiment seemed to improve on Tuesday, markets were volatile again on Wednesday morning
  • The causes of the Silicon Valley Bank and Signature Bank collapses were a combination of idiosyncratic factors and common drivers (higher rates)
  • We do not expect a systemic banking crisis for now, but will keep the situation under close review
  • The situation at Credit Suisse, a systemically important financial institution, warrants close attention

[Please click below to read the full note.]SVB failed to diversify its investments