Five Charts Show How SVB and Credit Suisse Shook Markets
- Investors unwind favored long bets on banks, cyclical stocks
- Divergence between equity markets and bonds is closing
A Credit Suisse Group bank branch in Basel, Switzerland.
Photographer: Stefan Wermuth/BloombergThis article is for subscribers only.
What a difference a week makes for stock and bond investors.
The shock collapse of Silicon Valley Bank and the turmoil engulfing Credit Suisse Group AG have demolished the pillars holding up the market’s broad narrative for 2023. Suddenly, talk of a hard landing for the economy is back and investors are unwinding their favored trade of being long banks and other cyclical stocks. Dormant volatility has spiked and expectations of further rate hikes are being ditched.