- Silicon Valley Bank was shut down by regulators on Friday due to a hit on a $21 billion bond portfolio and deposit outflows.
- U.S. banks have unrealised losses of more than $620 billion on securities due to rising interest rates.
- Risk premium on corporate debt has fallen since the start of the year but defaults are rising.
- Bitcoin languished at two-month lows on Friday, with prices plunging 64% in 2022.
- Real estate sector could face a 51 billion euro debt funding gap through 2025.
Reuters — Economy — Interest Rates — Finance — Monetary Policy — Banking
SVB collapse a sign of pain coming from end of easy-cash era
SVB collapse signals the end of the easy-cash era, with banks facing losses on bond portfolios and deposit outflows. Rising interest rates have increased losses on securities, while real estate sector could face a 51 billion euro debt funding gap through 2025.