March 16, 2023
On Friday, March 10, 2023, US banking regulators seized Silicon Valley Bank (SVB) and placed it under the control of the Federal Deposit Insurance Corporation (FDIC). Regulators intervened following SVB’s $US2 billion loss on the sale of Treasury and mortgage securities, a failed capital raise and subsequent credit rating downgrade, and an ensuing run on deposits. The US regulatory actions are designed to calm investors in the banking sector.
We are mindful that investors are looking for guidance as to how these events may impact their portfolios. Portfolio managers offer their perspectives on the unfolding situation, including the potential effects on the markets moving forward.
The views expressed above represent those of the relevant investment team as of March 14, 2023 and are subject to change. No information set out above constitutes advice, an advertisement, an invitation, a confirmation, an offer or a solicitation, to buy or sell any security or other financial product or to engage in any investment activity, or an offer of any banking or financial service. Statements in the commentary may differ from the views of others in MAM or of other Macquarie divisions or groups, including Macquarie Research.