Bank failure in America: how far does the infection spread?

In the morning, we wrote that the bank bankruptcies brought a sharp change in the interest rate path expected by American investors, the summer interest rate peak of 5.75% priced until Friday fell to 5.2% this morning. This has continued to fall this afternoon: investors are pricing in a 25 basis point increase for March, but there is no time for further meetings, and after September they expect the interest rate to return to today’s level (4.75%).

Future interest rates are decisive for the pricing of assets, as a result of which the dollar falls and bond yields fall.

The Federal Deposit Insurance Corporation (FDIC) has appointed Tim Mayopoulos as CEO of the bankrupt Silicon Valley Bank, Reuters reported.

Japanese multinational SoftBank Group Corp said on Monday that the failure of Silicon Valley Bank is expected to have little impact on technology companies in which its Vision Fund has invested, after US authorities said deposits were fully protected. SoftBank sees that the bankruptcy will not affect its financial situation, the technology conglomerate wrote in its statement, according to the Reuters report.

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