Quick Bites | Fundies switch worries from inflation to banks

“Systemic credit event” (in other words, a banking crisis) has overtaken “Inflation stays high” as the biggest worry for global fund managers. This was revealed in the March Bank of America Global Fund Manager survey and was a big turnaround from February.

Source: Bank of America Global Fund Manager Survey


Before a few weeks ago, few were concerned about a systemic credit event. Now, daily revelations about which bank is next to face the blowtorch is the market’s major talking point. First, it was Silicon Valley Bank, then Credit Suisse, and rumours around Deutsche Bank. We’ve had a few weeks to price in a lot of concerns, so we should consider the possibility that things turn out better than what is now priced into markets. Nevertheless, this story is still unfolding, so unfortunately it may be weeks or months before we can see things more clearly.

Of course, sometimes it’s the risks we aren’t talking about that prove to be the most harmful.



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