After a tumultuous 2022 for markets, 2023 has seen its fair share of volatility and unexpected stresses. Trouble in the banking sector, starting with the failure of Silicon Valley Bank which resulted in the shutdown of Signature Bank by the federal regulators, and subsequently Credit Suisse’s catastrophic liquidity crisis in Europe, sent shockwaves through equity and credit markets. While these banks’ situations were unique, their problems were the result of broader fragilities in the sector stemming from tight monetary policy. With inflation persisting, investors continue to be focused on earnings compression and global central bank policies.

Download PDF